Wednesday , May 12 2021

The Liberal Party seeks to eliminate the VAT rebate for entrepreneurs and trade

The Liberal Party presented a proposal to President Ivan Duke and the Economic Committees of the Congress, where paper was already prepared for the first debate on tax reform, which would give the national government 40 billion pesos, and not 14 billion pesos that were under-funded

The idea of ​​a liberal, led by the President of the Council, Alejandro Carlos Chacon, is trying to eliminate deductible VAT without the possibility of compensation or repayment of monetary amounts, as today's entrepreneurs and commercial institutions do.

In the tax statute, these sections are allowed to discount the amount of VAT, which in most cases amounts to 19%. "This means that businessmen finance their taxes with VAT paid by Colombians, just to give an example, if you get a tax family basket, as it is today, and a Colombian would buy success, the company would pay the citizens to use a discount for their taxes" , said in a proposal that liberalism was in economic commissions and that they had already handed over to Finance Minister Alberto Carrascoilli.

According to the accounts of that party, "today entrepreneurs or owners of commercial institutions can deduct from their taxes about 42 billion pesos, a figure Colombians pay for VAT, because it is a tax that can be deducted for legal entities. "

The President of the Council claims that "there is approximately 12 billion pesos for which no monetary balance is in favor. Just to show that this rule contributes to the promotion of a phenomenon such as avoidance and avoidance, it is enough to observe an unconfirmed personality, which allows us to conclude that this procedure is not being conducted for fear of being considered by DIAN. "

Liberalism insists that "it is not fair that the new reform imposes more taxes on Colombians, without companies that are actively involved in effective VAT collection. There is no capital when a citizen who pays VAT does not have the ability to refuse it, but it can be done by a company or a business facility at the detriment of the interests of the poorest Colombian citizens. "

For Chacon, a clear example of the feasibility of the proposal is that a 16% VAT tax has been changed for restaurants and foodstuffs in the amount of 8% of the impotent Tax Impoconsumo.

"This has enabled the consumer to use 8 points less taxes and charge the state in a genuine and efficient way, a tax that has harmed the consumer and the risk, and used them only to these institutions," the proposal that the liberals gave.

Finally, they reiterate that "the proposal will eliminate deductible VAT without the possibility of compensation or repayment of monetary amounts or generate complaints or objections with the general rate for goods currently taxable, regardless of what would significantly reduce the rates currently paid by Colombians."

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