There are many important points in the Colombian new tax reform that are important to review in order to analyze the economic effects in the Colombian families.

Economic effects in Colombia due to the Tax Reform

Juan Camilo Gaviria Henao

Universidad Militar Nueva Granada

RESUMEN

There are many important points in the Colombian new tax reform that are important to review in order to analyze the economic effects in the Colombian families.

• VAT hike: The VAT rises up 3 points, exempting products of the family basket, such as: eggs, milk, meat and so.

• 4 x 1000: The tax of the financial transaction stays the same and will not be eliminated. This can be seen as a weak point because the idea at first was to eliminate it.

• Internet: The strata 1, 2 and 3 will not be charged by the VAT in the internet, computers and low cost cellphones. Never the less, the strata 4, 5 and 6 will.

• Recreation tax: Consumer tax of 4 percent charged to mobile telephony for recreation and sport.

• More taxes for the Tobacco: It has been approved a step tax for the tobacco, settle in $700COP for 2017, and a similar amount for 2018.

Despite there exists many theories of what is the objective of the tax reform, the closest to reality is the need of the government of collecting several losses due to the great falling in the price of the petroleum.

Key Words

Tax, taxes, reform, economy, VAT, hike, percent, financial, strata, losses, petroleum.

Economic effects in Colombia due to the Tax Reform

Juan Camilo Gaviria Henao

Universidad Militar Nueva Granada

RESUMEN

There are many important points in the Colombian new tax reform that are important to review in order to analyze the economic effects in the Colombian families.

• VAT hike: The VAT rises up 3 points, exempting products of the family basket, such as: eggs, milk, meat and so.

• 4 x 1000: The tax of the financial transaction stays the same and will not be eliminated. This can be seen as a weak point because the idea at first was to eliminate it.

• Internet: The strata 1, 2 and 3 will not be charged by the VAT in the internet, computers and low cost cellphones. Never the less, the strata 4, 5 and 6 will.

• Recreation tax: Consumer tax of 4 percent charged to mobile telephony for recreation and sport.

• More taxes for the Tobacco: It has been approved a step tax for the tobacco, settle in $700COP for 2017, and a similar amount for 2018.

Despite there exists many theories of what is the objective of the tax reform, the closest to reality is the need of the government of collecting several losses due to the great falling in the price of the petroleum.

Key Words

Tax, taxes, reform, economy, VAT, hike, percent, financial, strata, losses, petroleum.

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