PanamaTimes

Thursday, Dec 26, 2024

Colombia oil, tourism industries warn tax reform may have negative impact

Colombia oil, tourism industries warn tax reform may have negative impact

Representatives of Colombia's oil, mining and tourism industries told opposition lawmakers on Monday a $5.7 billion tax reform proposed by the government of leftist President Gustavo Petro could put their sectors at risk.
Petro, who took office early this month, has said he is willing to negotiate on the reform, which seeks to raise 25 trillion pesos in 2023 to fund anti-poverty programs.

The bill would levy a 10% tax on income earned when coal and oil are exported for prices exceeding a certain threshold, though a proposal to include gold exports has been withdrawn.

The threshold for oil would be $48 per barrel, while coal exports would see the duty levied when prices exceed $87 per tonne.

"The tax reform as it's proposed puts at risk the viability of many exploration and production projects in Colombia, and with them our energy self-sufficiency," said Francisco Lloreda, the head of Colombian Petroleum Association, at an event hosted by lawmakers form the right-wing Democratic Center party.

"Not allowing what companies transfer to the government to be deducted from royalties, plus the export tax that is being proposed, would mean this industry will end up paying 24% of the reform," Lloreda said, estimating oil companies' taxes could increase by 65% to 80%.

The reform has profound impact on mining, said Juan Camilo Narino, head of the Colombian Mining Association (ACM).

"It compromises job creation, it compromises investment," Narino said, adding minerals are necessary for the transition to renewable energy.

Proposed duties higher than the normal value added tax of 19% on travel packages could damage tourism, which has not yet recovered to pre-pandemic levels, said Paula Cortes, the president of the Colombian Travel Agency and Tourism Association.

"Taking away tax benefits for tourism means we will not see a swift reactivation," Cortes said.

The head of the Colombian Agricultural Society, Jorge Bedoya, hailed the reform for not levying higher taxes on basic food, but warned potential labor reforms floated by the administration could have negative consequences.
Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
The Closure of the Global Engagement Center: Controversy, Claims, and Conclusions
The American Democrats Party Strives to Rise from the Ashes
Trump Nominates Kevin Marino Cabrera as Ambassador to Panama Amid Canal Dispute
Texas Congresswoman Kay Granger Located in Nursing Home Following Six Months of Inactivity
A large group of unauthorized migrants is traveling through Mexico with the aim of reaching the USA before Trump assumes office.
A Democrat Congresswoman with blue and black hair is having a breakdown over "President Musk."
Argentina Defies Predictions with Record $17 Billion Trade Surplus, But Is the Growth Sustainable?
Disney's High Seas Gamble: Navigating the Waters of Cruise Expansion
The Surprising Impact of Extreme Heat on Mexico's Youth
Polarization: The Word That Unites a Divided Era
Exoneration in the Subway: The Complexities of Self-Defense and Public Safety
The Tragic Passing of UnitedHealthcare CEO Highlights Corporate Security Challenges
Global Developments: Violence in Sinaloa, Political Chaos in the Bahamas, Venezuelan Voting Disputes, and a Major UK Drug Bust
OpenAI and Anduril: Charting AI's Path in Modern Warfare
The Pardon of Hunter Biden: A Symbol of Hypocrisy
Biden Crafted the Strategy Used by Trump
South Korea's Democracy Tested: President Yoon’s Martial Law Reversal Sparks Political Reckoning
Seoul Crisis: Yoon Suk Yeol's Martial Law Blunder Triggers Political Upheaval
Generative AI's Limited Impact on Elections Highlighted by Meta
France at the Precipice: Barnier’s Administration Confronts Unprecedented No-Confidence Vote
Jaguar Unveils Electric Concept Car, Type 00
White House Defends Presidential Pardon of Hunter Biden
xAI by Elon Musk: Transforming Ambition with a $50 Billion Valuation
President-elect Donald Trump, has announced on Truth Social that Kashyap "Kash" Patel, will be the next Director of the FBI
A Historic Milestone or Risky Precedent? The Assisted Dying Bill Splits both Parliament and the Nation in England and Wales
Trump's Tariff Threat Looms Large as Trudeau Heads to Mar-a-Lago for Talks
Canada's Oil Industry Faces Uncertainty Amidst Trump's Tariff Threat
World Court to Assess Global Legal Responsibilities on Climate Change
What the Pink Elephant Test Reveals About Thought Control
Trudeau Visits Trump in Florida Amid Rising Tariff Concerns
Is Elon Musk the Unofficial President of America?
Impact of Proposed US Tariffs on Canadian Oil Exports
U.S. policymakers face a contentious debate over whether to engage with Nicolás Maduro's regime in Venezuela.
COP29's Carbon Trading Deal Faces Major Criticisms
Indian Diplomats in Canada Monitored: Government Raises Alarm
Putin Warns Trump of Ongoing Safety Concerns
Claudia Sheinbaum Challenges Trump's Migration Claims
Insights from Dostoevsky: The Impact of Self-Deception
Trump Administration Nominees Face Threats, FBI Confirms
Elon Musk Criticizes Fighter Jets, Advocates for Drone Warfare
Kim Kardashian's Social Media Activity Fuels Political Speculation
An Examination of AI's Influence on Future Work and Life
Tulsi Gabbard's Contentious Nomination for Director of National Intelligence
$100,000 Trump Watch Faces Slow Sales
Surge in Golden Visa Interest Among Americans Post-Trump Election
Elon Musk and Vivek Ramaswamy Aim to Reduce US Federal Spending
Donald Trump nominated Linda McMahon for the position of Secretary of Education.
Russia Pledges Response Following Ukraine's Use of US Long-Range Missiles
Joe Biden Joins G20 Leaders' Photo Re-Take in Rio
Trump Plans to Reverse Biden's Fuel and EV Regulations
×