Colombia suspends ‘most important project of this century’
How to end the war in western Colombia?
Colombia’s government talks peace with ELN in Cuba
Colombia and Venezuela reestablish diplomatic ties
How to keep Venezuela’s diaspora in Colombia safe?
Colombia’s new government proposes tax reform to finance...
Peace talks with Colombia’s ELN guerrillas ‘about to...
Colombia’s largest paramilitary group announces unilateral ceasefire
The men and women who will govern Colombia...
Gustavo Petro sworn in as Colombia’s new president
  • About
  • Support
  • Newsletter
  • Contact
Colombia News | Colombia Reports
  • News
    • General
    • Analysis
    • War and peace
    • Elections
    • Economy
    • Culture
    • Sports
    • Science and Tech
  • Travel
    • General
    • Bogota
    • Medellin
    • Cali
    • Cartagena
    • Antioquia
    • Caribbean
    • Pacific
    • Coffee region
    • Amazon
    • Southwest Colombia
    • Northeast Colombia
    • Central Colombia
  • Data
    • Economy
    • Crime and security
    • War and peace
    • Development
    • Cities
    • Regions
    • Provinces
  • Profiles
    • Organized crime
    • Politics
    • Armed conflict
    • Economy
    • Sports
  • Lite
  • Opinion
Colombia banks
EconomyLatest news

Banks gear up to pressure Colombia’s govt to end ‘always changing’ tax reform

by Samuel Moldovan August 21, 2014

Colombia’s banks will press the government to stabilize the country’s tax reform program, urging Colombian President Juan Manuel Santos  to stop “changing the rules every 24 hours.”

“In the current administration we’ve already had four [changes to tax law], and we are now preparing for another: so the message they are sending is that the rules are always changing for the population, and that is not healthy.  You cannot change the rules of the game every 24 hours” says Maria Mercedes Cuellar, president of the Banking Association (Asobancaria).

Colombia’s banks are one of the most powerful economic groups in the country and they have proposed several structural reforms to the tax laws that could help to stabilize expectations about future changes.

These reforms include reducing the tax rate for businesses, expanding the base of the population who pay taxes (current levels are far below OECD standards), and putting in strict control measures for non-compliance, according to Santiago Perdomo, president of Banco Colpatria, a large Colombian bank.

MORE: World Bank signs on to fix Colombia tax collection

One major and immediate problem that the banking community says it wants to bring to the government’s attention is the taxing of electronic payments, which incentivizes merchants to take cash and slows the integration of electronic payment systems into the wider economy.

MORE: Bank withdrawal tax impedes sectoral growth: Colombian banks

Moreover, this “electronic tax retention” is inflating the amount of hard cash in the economy to levels above those countries with similar levels of development.

“The goal is that 30% of the liquidity in the economy will be cash in two years, a rate similar to countries having the same levels of social and economic development as Colombia, and to later reduce it to 20%, which is the level of the US and Chile,” says Perdomo.

The convention was set to start on Friday and run until Saturday.

Sources

  • ‘No se pueden cambiar las reglas cada 24 horas’  Asobancaria (El Tiempo)
bankseconomytax

Trending

  • Colombia to seek decriminalization of drugs despite US objections

  • Medellin’s secret history of violence against women and girls

  • How serious is Colombia’s president-elect about fighting corruption?

Related articles

  • Colombia’s state-run oil company clashes with incoming government

  • Gross domestic product

  • Labor and unemployment

  • RSS

@2008-2019 - Colombia Reports. All Rights Reserved.
Powered by Digitale Zaken and Parrolabs


Back To Top