Taxes for Catatumbo Provoke a Fierce Judicial Debate
Tax attorney Juan Camilo Riveira was interviewed by Portafolio about new temporary taxes that will affect the region of Catatumbo in Colombia. President Gustavo Petro's government announced three new taxes on online gambling, gas and coal, and notarial procedures with a stamp duty that, according to the Interior Ministry, will generate about COP$3 billion in collections in 10 months. Mr. Riveira highlighted that the new measures could negatively affect the extraction industries, a sector already hit hard in previous tax reforms.
"The new tax on extractions of hydrocarbons and coal, even though it is temporary, will increase the tax burden on these sectors that are already highly taxed and that in reality contribute significantly to the economy and development of the country," he said. "This could disincentivize investment and affect the competitiveness of these industries, leaving them in an unfavorable position compared to other jurisdictions."