“What is urgent at the moment is to control the excess of spent and waste currently generated at national level,” he stressed. José Manuel Restrepo.
He rector of EIA University Another important point he added was the issue of tax cuts. “If you plan to cut certain taxes, such as income taxHow will this decrease and the economy be compensated knowing that the tax collection so far does not show good results? In that sense, it seems to me that before we talk about a new tax reform, it would be good for the Government can answer these concerns.”
(Here also: “There is confidence in investments, but creditworthiness may deteriorate.”)
About this, the Minister of Finance explained that he will present a new one in the next term tax reform which has two elements: a reduction in the corporate tax rate from 35% to 30%, accompanied by a possible increase in the personal income tax rate, the latter of which, depending on the evaluation, will yield fiscal behaviour towards October or November of this year.
He former Minister of Finance, Juan Camilo Restreposaid that “if the architecture of the reform is not ready until November, it is unlikely to be approved before the end of 2024, and not until 2025.”
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“However, since the reform outlined mainly concerns direct taxes (income), which can only be applied in the year following its approval, this means that the new tax reform cannot come into force until 2026, when it will already be in effect. It is very late to reactivate the economy, which is said to be its purpose,” the newspaper said. former Minister of Finance.
For his part, Hendrik Amorocho, professor of public finance at the Universidad del Rosarioclaimed that this new bill would not help at all in the country’s economic reactivation process.
“So that there is a reactivation real, immediate actions are required, that is, from now on. Measures are needed to help stimulate aggregate demand, and to help businesses with supply, and without a doubt this is a measure that will do that Government It’s not going to help at all, and it could even take until 2026, and in the best case, if all goes well, that would be in 2025,” Amorocho stressed.
In this sense, he emphasized that presenting a tax reformor as he calls Minister of Financea “tax cut” will not help at all to revive the economy.
“What if a good alternative is for the economic reactivation is the commitment that Bank of the Republic must deliver on its forecasts of a rate cut of at least 300 basis points interest from now until December and thus remain at an average of 8.25%, so that in this way the credit request“What is currently compressed can be reactivated,” he said.
At the same time, the director of Fedesarrollo, Luis Fernando Mejíainsisted that this new tax reform would be “inappropriate” given the country’s complex fiscal situation. “While the corporate tax cut is necessary, the problems of collection that he has had Government would the tax situation”.
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.
