An analysis of the unionized text shows that, in what has to do with building materials, the combined rate of rent plus allowance leaves the country with an income tax of 45%, without deducting royalty fees as they do in other countries. “This is an unprecedented value compared to other countries in the region, including Brazil, Mexico, Chile and Peru, with percentages reaching 34%, 30%, 27% and 29.5% respectively,” said Juan Camilo Narino.
Thus, according to the association, the country would be exposed to imports of ceramics, cement and other industrial materials, making Colombian homes and developing national infrastructure more expensive.
The revision of the text also makes it clear that, if royalties are not seen as a cost of the operation, it will be impossible to encourage exploration for the minerals needed by the country and the world to make progress in the process of energy transition, a flagship project of the current government. In short, the country would be without the incentives to expand ongoing projects, as the state receives 90% of the profits from an operation.
Source: El heraldo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
