VAT: two million families will benefit from VAT refunds as of April

The Government has said that this refund corrects an injustice such as charging the same rate to the highest income households and the most vulnerable.

The director of the National Planning Department -DNP-, Luis Alberto Rodríguez, highlighted the progress made by the Government in terms of VAT refund and assured that, as of April, two million Colombian households will receive this compensation.

With this refund, “basically a historical injustice is corrected, which was to charge the same rate to higher income households and the most vulnerable households”, he said.

In addition, he indicated that “last year we reached one million households with this mechanism, which is already being returned to the poorest households and was previously taken away from them, through this tax”. Rodríguez explained that the beneficiaries of the program are families that are chosen and selected to receive the VAT refund, through a transfer that is made every two months.

“They are households that are currently in a situation of extreme poverty and, as Colombians, we have the obligation to maintain this program over time,” he pointed out. Rodríguez indicated that the program has been recognized by international organizations, academic papers and, hopefully, we will not only reach four million households, but all households that are in a situation of poverty.

Source: Actualícese