2024-07-26 15:22:54
President Gustavo Petro has suggested that VAT-free days in Colombia be focused exclusively on national products, as a way to protect local production and employment.
The proposal, which will be debated in Congress, includes domestic food, clothing, textiles, solar panels, and electric vehicles.
Through his account on the social network X, Petro explained the reasons behind the government’s objection to the bill approved by Congress that sought to revive the VAT-free Day for all products, including imported ones.
“According to the Constitution, there cannot be tax laws without the approval of the National Government,” said the president. He also emphasized that eliminating VAT on imported products would seriously harm national production and destroy jobs without offering any kind of compensation.
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In his message, the president proposed a first day without VAT for national food goods, a second day for national food, clothing, textiles and leather, and a third day for goods from the basic family basket and national solar panels. and imported, as well as domestic and imported electric vehicles.
In previous tweets, Petro had already expressed his opposition to the elimination of VAT for imported products, arguing that this measure would favour foreign products to the detriment of local production and employmentHe criticised the position of the Democratic Centre, which supports the elimination of VAT without considering the negative consequences for the national economy.
The government’s objection to the bill approved by Congress is based on reasons of unconstitutionality and inconvenience, according to the Ministry of Finance. The ministry said that the bill does not establish adequate mechanisms to ensure that the benefits reach consumers and prevent producers and sellers from modifying their prices to capture the VAT benefit.
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