The Instituto Colombiano de Derecho Tributario (Icdt) presented President Abelardo de la Espriella with a set of proposals on fiscal needs and alternatives. The group put forward a targeted VAT exemption or refund at the point of purchase. The proposals arrive as debate over the filing of the Ley de Rescate continues.
The fiscal cost at stake
The Icdt estimates tax expenditure from income tax and VAT benefits at 153 trillion pesos. About 100 trillion pesos of that total corresponds to preferential VAT treatments. The group stresses that this figure cannot be treated as revenue the government could fully recover.
Each modification, the Icdt argues, must weigh its economic and social effects. It also says the cost of protecting vulnerable sectors has to be counted.
How the refund would work
Under the proposed mechanism, buyers would not pay VAT first and then request reimbursement. The exemption or refund would apply at the moment of purchase. The group also calls for identifying beneficiaries and ensuring traceability to prevent fraud. Input VAT credits would stay within the production chain.
The Icdt says this approach lets the benefit reach those who need protection. It is headed by José Andrés Romero Tarazona for the 2026-2027 period.
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Seeking agreement on the Ley de Rescate
The Icdt said it wants to contribute to the deliberation on the Ley de Rescate. The group said it hopes to help build agreements that move public finances toward sustainability, with equity and legal certainty.
Source: Instituto Colombiano de Derecho Tributario (Icdt)
