These are the 9 proposals for tax reform that the academics delivered to the Colombian Government

The Minister of Finance, Alberto Carrasquilla, assured that in February 2021 it will deliver a report to start the discussion on the new tax reform in the country. For this reason, several sectors have chosen to launch proposals to the Government to join the debate. Thus, nine thought centers, grouped in the Tax Work Network, presented nine proposals and some objections.

For the academy, the Government does not have the ability to refund VAT to the entire vulnerable population. Although extending the tax burden to the entire family basket would increase the collection in the country, says Forbes magazine, the negative impact would seriously affect the population with fewer resources. Currently, the VAT refund only benefits groups belonging to Colombia Mayor and Families in Action, which represents one million homes in the country. The Tax Work Network indicates that these programs exclude 60% of the poorest population.

The first proposal indicates that develop a proportionality test to approve the tax benefits and take into account which ones should be eliminated, since, currently, points out the magazine Semana, the population with the highest income is the favored one. Second, it proposes access anonymized data, Valora Analitik points out, regarding income declarations, tax benefits and penalties for evaders. The third proposal points to the non-implementation of VAT to the entire family basket due to the serious consequences for the vulnerable population.

Fourth, the sugary drinks tax so that, with this collection, public health is improved. The fifth proposition seeks extend the tax on carbon dioxide emissions from natural gas and coal, which in the first year contributed $ 476 billion according to Semana magazine, and progressively increase its rate. Unify the concept of final beneficiary within the tax system It is the sixth idea designed by the Tax Work Network.

Also, the sixth numeral proposes that a taxable tax on digital services with a low fee. This initiative is based on the consideration that the digital economy was not affected during the pandemic, it did not even stop its growth, RCN Radio points out. The eighth idea points to raise the property tax rate and migrate to a universal income tax return of natural persons to keep a record of the population that requires social assistance, explains Semana magazine. The ninth proposal has a focus on tax culture, because it seeks to make the population aware of the importance of paying taxes, especially in colleges and universities. To this end, national training sessions will be held on tax culture.

The academy proposed alternatives such as the creation of a surcharge that is calculated according to the consumption data of the family basket of the most favored households and “it is collected through the income tax return,” explains Forbes magazine.

These proposals, the academics point out, seek, in addition to protecting the Social State of Law in accordance with the principles of taxation, reduce the inequality gap of the current Colombian tax system that, given the pandemic, could worsen. Therefore, according to