In the Headlines
September 20, 2024
Construction and Real Estate Sectors Would Be the Most Affected by New Tax Reform: "It Would Lead to Greater Paralysis"
Revista Semana
Tax attorney Juan Carlos Valencia was interviewed by Revista Semana about the potential effects of the new proposed tax reform in Colombia. Mr. Valencia analyzed the potential impact on various economic sectors, highlighting that construction and real estate would be the most affected. He also pointed out the consequences for job creation and economic recovery, questioning the effectiveness of some measures.
"I would see a material impact on the construction and real estate sectors. The generalization of the wealth tax completely discourages investment and savings. If a taxpayer approaches the threshold to be subject to the declaration and payment of the wealth tax, it's logical to think that they will prefer to stay below that threshold and would lean toward spending instead of increasing investment in assets. This, coupled with the fact that in 2022 an additional stamp tax was established on property transfers and that the occasional gains tax has been increasing from 10 percent to 15 percent and now to 20 percent, would lead to a greater paralysis of these two sectors," he said.
READ: Construction and Real Estate Sectors Would Be the Most Affected by New Tax Reform: "It Would Lead to Greater Paralysis"
"I would see a material impact on the construction and real estate sectors. The generalization of the wealth tax completely discourages investment and savings. If a taxpayer approaches the threshold to be subject to the declaration and payment of the wealth tax, it's logical to think that they will prefer to stay below that threshold and would lean toward spending instead of increasing investment in assets. This, coupled with the fact that in 2022 an additional stamp tax was established on property transfers and that the occasional gains tax has been increasing from 10 percent to 15 percent and now to 20 percent, would lead to a greater paralysis of these two sectors," he said.
READ: Construction and Real Estate Sectors Would Be the Most Affected by New Tax Reform: "It Would Lead to Greater Paralysis"