On August 18, the National Government, with the support of the OECD, set up the Committee of Experts on Tax Benefits designed to improve the tax system in terms of progressiveness, efficiency and simplicity. The creation of this body was called by Congress in the context of the Economic Growth Law processed at the end of 2019 and it is expected to present a report with recommendations on the matter in February 2021.
The Committee’s job is to analyze the impact and relevance of tax exemptions and incentives to improve uptake, and recommend tax measures to boost economic growth and job creation. Five working groups are envisaged, involving international experts, officials from the National Tax and Customs Directorate, from the Ministries of Finance, Trade, Labor and Agriculture, as well as OECD representatives.
Finance Minister Alberto Carrasquilla explained that “the results of the Committee represent a major contribution to the nation’s fiscal strategy in the medium term, with a view to improving its revenue collection and uptake structure.” In addition, he affirmed that the additional resources will be relevant for Colombia’s economic reactivation strategy, in response to the effects of COVID-19 during 2020.