Final for the three days without VAT

It seems that December 2, 2022 will be the last of the three VAT-free days. Yes, after this year there may be no more such days.

It is said that the VAT-free day does not benefit the national industry, so it is not seen in the next government’s economic strategies.

This allowed citizens to acquire some products with a reduction in their value, as a promotion to the sale of imported products of higher added value, with sacrifice in the collection, without stimulus of the national. I do not see this in the next government, when it is betting for more industry and national consumption.

Traders ask for dialogue before making a decision

The president of the Federación Nacional de Comerciantes Empresarios -Fenalco-, seeks to sit down and discuss with the new government the technical and economic arguments so that the days without VAT continue to be a benefit for all Colombians.

This was stated in a press release to the public. “This initiative has benefited trade, national industry, the Government and Colombians of all strata, who can purchase products 19 % cheaper.”

From his point of view, before the inauguration of the new Government it is too early to talk about ending these dates, without knowing in depth the results, the social and economic impact of this initiative.

Reasons why the VAT-free days should not go on any longer

From the point of view of the economic team of the Universidad de Los Andes, the three days without VAT should be eliminated.

– A huge effort by the Government to put together the lists of goods and amounts that are subject to the rebate and their subsequent verification, which would certainly have better uses.

– A loss of tax legitimacy: it normalizes days in which we do not fulfill our commitments to finance public goods.

– Those who benefit most from these discounts are those with the highest incomes, and this introduces another regressive chapter to the Statute.

– It unleashes strategies by businesses to invoice goods on the day of the discount, thus further eroding revenue collection.

– The dates of the three days are decided discretionally by the Government, which opened another front of manipulation of the tax policy: in 2022, two of the three days coincided with weekends in which there were elections.

A day that favors few

“measures such as VAT-free days only benefit a few and do not generate a huge impact on the economy.”

On this issue, Luis Fernando Mejía, director of Fedesarrollo, said that measures such as VAT-free days only benefit a few and do not generate a huge impact on the economy.

It is necessary to eliminate VAT-free days, due to their regressive incidence (those who take most advantage of this benefit are middle and high income people); and introduce an ad valorem tax on unhealthy foods and beverages, such as those high in sodium, sugar and saturated fats.

Source: Actualícese

Nuevo Gobierno y ¿punto final para los tres días sin IVA?