The Centro Democrático party has presented a set of observations and proposals on the Ley de Rescate Fiscal, the fiscal rescue law, questioning several proposed tax increases and offering alternatives. Among them is the sale of an additional stake in Ecopetrol, the state oil company, along with deeper spending cuts.
Tax increases under scrutiny
The party objects to raising the value-added tax, or IVA, from 5 percent to 19 percent on products and services, including internet service for strata 1, 2 and 3. The party also raised concern about a tax on green coffee, which it said could affect about 500,000 coffee-growing families.
The party also flagged a three-percentage-point increase in health contributions for independent workers.
Ecopetrol stake and asset sales
The party proposed prioritizing the solidarity sector and institutional investors in an Ecopetrol stake sale. It also suggested evaluating assets such as ISA and the pipeline it owns.
Under its alternative reform, the party proposed excluding the designation of the Ecopetrol authority from the president’s competence. It also proposed reducing or eliminating some taxes, including the wealth tax.
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Spending cuts and the adjustment
The article states that 70 percent of the adjustment was announced to come from spending cuts. A recent Centro Democrático discussion, however, estimates that component at between 21 and 25 percent of the law’s total impact.
Source: Centro Democrático
