The Colombian House of Representatives approved on Thursday the tax reform presented by the government of Gustavo Petro, which aims to raise about 20 billion pesos (about 4.8 billion euros) over the next four years.
After almost 22 hours of debate – split between Wednesday and Thursday – and an adjustment that was not among the plans of the Executive, the parliamentarians have approved with 125 votes in favor the reform that, according to Petro, «seeks greater social justice in Colombia».
Among the most important points of the measure are that the State will be able to collect an additional 4,090 million Euros and that the norm will no longer allow the deductibility of royalties in the income tax of mining and energy companies and the levies on food and ultra-processed beverages, as the Government had hoped to do.
This change lowers the collection from the 5,100 million euros to 4,090 million euros that has been finally agreed, as reported by ‘El Colombiano’.
In addition, the Congress has unanimously agreed that bread will not be taxed in any of its presentations, while the opposition has been upset about the rest of the products that will pay the tax, such as custard, arepas, chocolates, instant coffee, sausages or ice creams, among others.
The article that establishes taxes for foreign companies with significant economic presence in Colombia, such as Netflix, Amazon or Uber, has also been endorsed.
Likewise, parliamentarians have proposed a modification to allow the third day without VAT this year, which was left up in the air after the arrival of the Petro Government, which promised to repeal it, assuring that it mainly benefited high-income sectors, with consumption and savings capacity.
The reform must be conciliated in the Senate next Tuesday. If it goes through, Gustavo Petro will be able to sign it into law.
