Tuesday, November 29, 2016

The Colombian government at a crossroad with the tax reform

The project that increases taxes on ICT was rejected by the sector. But the initiative is being debated in parliament at the same time as the new agreement with the FARC. And, in the face of the 2018 presidential elections, even lawmakers hesitate to approve unpopular measures such as the VAT increase.

The finance minister, Mauricio Cárdenas, in early November presented the project of the structural tax reform, with which the government of President Juan Manuel Santos argues that it seeks simplicity and equity to the tax system. The initiative was filed with the Secretary General of the House of Representatives as a matter of urgency, in order for Congress to approve the law before the end of the year. The government's argument to defend the urgent nature of the project is that if the reform is not done, the tax revenue will go from 15% of the Gross Domestic Product (GDP) in 2016 to 14.9% next year, thus continuing a slowdown that would reach 13.5% of GDP in 2022. Economic forecasts drive the need for the reform. Several analysts agree that the performance of GDP next year will be better than 2016 but that growth would not be as good as meeting the 3.5% target set by the Ministry of Finance. The market expects, on average, a 2.6% growth for 2017. The controversial point of the reform is the VAT increase from 16% to 19% progressively over the next three years. In addition, higher taxes are expected on income, fuels, and cigarettes. In addition, penalties are hardened to evaders, including jail.

Read full article

MORE ANALYSIS

América Latina · Submarine Cables · Terrestrial Backbones · Data Center03/11/2026

Resilience emerges as a key driver of terrestrial and submarine network deployments in Latin America

Wholesale networks are taking on a new role, with resilience and robustness becoming strategic factors that complement existing connectivity and support future AI infrastructure.

Globales · Software and Applications02/11/2026

Google’s collapse revives questions about how to monetize AI investments

Last Thursday, Alphabet shares fell more than 12%. Investors reacted to lower total revenue in the third quarter, a decline in net income and negative cash flow for the first time in the tech giant’s history.

América Latina · Terrestrial Backbones · Internet & OTT02/11/2026

Fiber Connect LATAM: Fiber optic deployment in Chile increased 46-fold in 10 years

Argentina · Internet & OTT28/10/2026

Argentina’s Internet map 2026

The wholesale Internet market: Between consolidation and network expansion

América Latina · Operators26/10/2026

The new MVNO paradigm in Latin America: Ecosystems, technological efficiency and brand loyalty

A GSMA Intelligence report shows how mobile virtual network operators are turning to digital distribution to reduce technology costs, given that their ARPU is 30% lower than that of traditional operators.

List all analysis

A DIARIO LATINO 03-11-2026

América Latina · Submarine Cables · Terrestrial Backbones · Data Center 03/11/2026

Resilience emerges as a key driver of terrestrial and submarine network deployments in Latin America

Perú · Terrestrial Backbones 02/11/2026

InterNexa to invest up to US$10 million annually in infrastructure

Globales · Software and Applications 02/11/2026

Google’s collapse revives questions about how to monetize AI investments

List all news