Business Owners Seek Tax Incentives in Neiva, Colombia
Merchants associated with the National Federation of Business Merchants (Fenalco sectional-Huila) in Neiva, Colombia, have requested tax incentives for established companies. They argue that the current tax burden is excessive and poses a significant burden for businesses.
The region has witnessed several business closures, leading to concerns about the fragile state of the local economy. Silvia Cristina Cuéllar, director of Fenalco sectional-Huila, emphasized the need for government support to sustain businesses.
The city of Neiva stands out as the Colombian city that allocated the highest proportion of its income to food procurement in 2023.
The executive director acknowledged the high taxes associated with starting a business but highlighted the need for entrepreneurs to adapt to changing marketing and communication trends. He emphasized the organization’s efforts to train and support microenterprises, which account for 80% of the regional economy.
The discussion also touched upon the slow economic growth, inflation, and security concerns facing businesses. The official expressed worry about the lack of transparency and reporting of crimes.
The Chamber of Commerce of Huila previously identified factors hindering business development, including market instability, financing limitations, and tax burdens. The organization is working with local authorities to incorporate these concerns into the development plan.
The World Bank recognizes Colombia’s strong macroeconomic framework as a key factor in its stability. However, it notes that economic growth is facing challenges due to unwinding stimulus measures and uncertainty. The bank emphasizes the need to address income inequality, improve social security, and tackle climate change to promote inclusive growth.