Duque Enacts Economic Growth Law
2 enero 2020

COLOMBIA

On December 27, the Executive Branch enacted the Economic Growth Law (2010 of 2019) following its adoption by the Legislative Branch on December 20 in a round of extraordinary sessions. The new law alters current tax regulations regarding medicine production and sale, shifting from a regime of exclusion to a VAT-exempt one in order to cut prices. The law is already in force.

In parallel to the introduction of the new VAT regime governing medicines and supplies for their manufacture, the regulations establish that the National Commission for the Price of Medicines and Medical Devices must review whether the tax regime change will effectively reduce medicine prices.

Furthermore, the National Government is required to submit a report to Congress regarding the effects of eliminating VAT and replacing it with a National Consumption Tax at a rate of 8%, to be introduced 6 months after the law’s enactment. 

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