De la Espriella government unveils "economic rescue law" with spending cuts and higher VAT
The government of Abelardo de la Espriella presented the "economic rescue law" to Congress, aimed at closing the fiscal gap through spending cuts and tax changes. According to Vice President José Manuel Restrepo, 70% of the adjustment will come from public spending and the state is promised to shrink by 15%. The law would improve public finances by COP 51 billion in 2027 and COP 122 billion in 2030. It includes eliminating VAT exclusions and exemptions, with a 19% rate for goods and services currently at 0% or 5%.
In 45 seconds
- 70% of the fiscal adjustment would come from public spending, with a promise to shrink the state by 15%
- The law would improve public finances by COP 51 billion in 2027 and COP 122 billion in 2030, according to the government
- Almost all VAT exclusions and exemptions are eliminated: coffee, fruit, fixed internet for income strata 1 to 3 and cinema tickets would be taxed at 19%
Read the full story at El Espectador
IASummary generated by artificial intelligence from a story by El Espectador. It may contain errors: the original source prevails.
Comments
Be respectful. Comments reported by several people are hidden until a moderator reviews them.
You do not need an account to read, only to comment. Sign in with a code sent to your email or with your Google account. We only show the name you choose, never your email.