Economic Rescue Law: 19% VAT on food and changes to income tax and payroll
Colombia's government presented the Economic Rescue Law to stabilize public finances amid a high fiscal deficit and debt level, according to the Finance Ministry. The bill cuts public spending, makes tax adjustments and creates incentives for foreign investment. It includes eliminating differentiated VAT rates and applying 19% to previously exempt products such as rice, meat, coffee and alcoholic beverages, plus health and surveillance services, with VAT refunds for strata 1 and 2 from 2028. It also broadens the income tax base for individuals and creates the RUGE for companies. It remains under review in Congress.
In 45 seconds
- The bill eliminates differentiated VAT rates and applies 19% to rice, meat, coffee, alcoholic beverages and health and surveillance services
- The government plans to refund VAT to strata 1 and 2 starting in 2028
- Exempt income caps are reduced, so more individuals will pay income tax and those already paying will pay more
Read the full story at Pulzo
IASummary generated by artificial intelligence from a story by Pulzo. It may contain errors: the original source prevails.
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