2024-09-10 19:50:26
Finance Minister Ricardo Bonilla presented the new Financing Bill in the House of Representatives.
According to Minister Bonilla, the initiative seeks to stimulate the country’s economic recovery through a series of tax reforms and the incorporation of the Green Fiscal Rule, which would allow access to financing for sustainable projects without increasing public debt.
The bill focuses on three pillars: incentives for economic recovery, new sources of tax revenue, and the implementation of the Green Fiscal Rule in 2025, bringing forward its validity from its initial scheduled date of 2026.
Tax reform for productive and unproductive sectors
One of the central themes of the project is the differentiation between productive and unproductive economic activities. According to Minister Bonilla, everything that is not considered productive according to the Tax Statute must pay the wealth tax“In this way, we will make all economic activities release and clean up their assets, and build a path of productivity growth in Colombia,” said Bonilla. The measure aims to clarify and separate the activities that are currently mixed between productive and unproductive, thus promoting a more efficient use of economic resources.
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Stimuli for economic recovery
The bill also proposes the progressive reduction of the corporate income tax rate, excluding the coal and oil sectors. Starting in 2025, companies with net taxable income below 6,285 Tax Value Units (UVT), equivalent to 296 million pesos, will see a reduced rate of 27%, benefiting 91% of the country’s companies. Those generating between 296 million and 5,648 million pesos will have an initial rate of 34%, which will gradually decrease to 30% by 2029.
Likewise, an increase in the income tax rate for individuals with incomes exceeding 1.459 billion pesos is planned, as well as a set of measures to stimulate tourism in municipalities with fewer than 200,000 inhabitants, including the reduction of income tax to 15% for those who develop new infrastructures in hard-to-reach airports.
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