In the Headlines
August 13, 2022

"It Would Have Seemed More Practical to Have Taxed the Totality of Foods with VAT"

La República

Tax attorney Juan Carlos Valencia was interviewed by La República about the new tax reform bill in Colombia. This bill includes some controversial measures, such as taxes on sugary drinks and ultraprocessed foods. Mr. Valencia commented that it would have been more practical to tax all foods with a Value-Added Tax (VAT) to distribute the tax burden. However, he also highlighted positive aspects of the reform, including its intention to create a more progressive system and a clause of acquired rights that could attract more foreign investment in the country.

"Starting with the positive, it is appropriate to highlight the redistributive purpose of the project and its intention to achieve a more progressive system," he said. "...An indirect tax such as VAT would make it possible to better distribute the greater tax burden that the current government intends, instead of focusing it on the wage-earning sector."

READ: "It Would Have Seemed More Practical to Have Taxed All Food with VAT"

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