On April 18th, the Economic Regime Committee began to analyze the bill that interprets the economic reactivation law. The president of the committee, Soledad Buendía (Alianza País – government party), stated that the committee’s intention will be to deny the tax benefits to investment projects in public-private partnerships (PPPs) that existed prior to its enactment.

The Economy Reactivation Law was passed January 1st, 2018. It establishes benefits for public infrastructure projects in public-private partnerships. The deduction of payments originated by external financing and the exemptions to the tax on the exit of foreign currency in payments made abroad or external financing stand out as the chief benefits.

However, the bill’s ambiguity generated controversies regarding the PPP projects that would be reached by the benefits. In this sense, legislators presented an Interpretative Law regarding article 6 of the Reactivation Law to clarify it.

Deputy Buendía stated that she rejects the retroactive effect of benefits established by the Economic Reactivation Law. This is why she is working on a report that consecrates this benefits only for the new PPP initiatives. The committee expects the report to be ready during the first days of May.