Colombian Congress approves increase in VAT from 16% to 19%

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At least 15 foods of the family shopping basket such as cereals, vegetables and canned vegetables, seafood and derivative dairy would have the tax. | Photo: Luis Angel - the spectator

The Congress of Colombia approved Thursday the VAT increase to 19 per cent, after receiving the affirmative vote of the Senate in the context of the discussion of the tax reform presented by the Government to raise funds by the fall of the oil price.
The rise of the tax to the value added (VAT), from the current 16 to 19 percent, apply from 2017 to a large number of products with the exception of some foods and other goods of the basic basket.
Social sectors express their concern over this fact because they highlight that this reform is regressive and undemocratic. 
This tax reform taxed products such as toilet paper and towels for menstruation with VAT of 19% tax. Poor women sentenced to inequality.

In the Colombian Congress, citizens protest against the tax reform that is about to be approved and that will deepen the inequality pic.twitter.com/6MnWoS7cXD – Lorraine pits (@LHoyosteleSUR) December 20, 2016 although the VAT increase already approved by the Senate and the House of representatives, for the definitive validation of still need tax reform that Senators approve some articles and subsequent reconciliation of the texts adopted in both Chambers to define other key issues , as the prison terms for big tax evaders.
In the plenary of the Senate, the Finance Minister, Mauricio Cardenas, explained it is important to increase VAT because the oil revenues “ended up full and the year 2017 are still at zero”.
For his part, Green Alliance (center-left), Claudia López, Senator said that VAT to 19 percent “is inequitable, because it is regressive, because it is abusive with lower-income Colombians.”

Tags VAT Colombia reforma tributaria AFP – El Espectador by: teleSUR – KP