Subsidies and economic relief that will not reach 2023

This Saturday, December 31, the validity of the economic relief created in the Social Investment Law of the government of former President Iván Duque expires. as measures created to counteract the effects of the covid-19 pandemic.

Programs such as Solidarity Income or VAT discounts on air tickets will disappear in 2023, a situation that could affect the pocket of Colombians.

The director of the Department of Social Prosperity (DPS), Cielo Rusinque, confirmed that Solidarity income no longer goes and that this month the last transfer will be made to the beneficiaries.

“The subsidy had been given in the framework of the pandemic to mitigate effects. There were limited resources that we did not have and the previous government left it available until December 31, 2022. That is the only transfer that ends ”, Rusinque said.

(No more: the Solidarity Income subsidy will not continue in 2023).

That is, Families in Action and Youth in Action would continue.

President Gustavo Petro himself had already assured that the program was going to end on December 31.

Solidarity Income benefited almost 2 million households in extreme poverty and the Government provided $400,000 million to guarantee the extraordinary transfer in December.

Another relief from the Social Investment Law that will lose effect on December 31 is that of the 5% discount on VAT on air tickets, which will return to 19%.

This reduction was made to promote the reactivation of the tourism sector, after the covid-19 and it was for two years.

(The reasons why air tickets would go up between 30% and 40%).

With the expiration of this relief, tickets could become more expensive in 2023 between 30% and 40%, taking into account that VAT returns to 19%, which is added to the increase due to inflation that exceeds 12%.

Faced with this issue, the Minister of Transportation, Guillermo Reyes, announced that the Government will work together with air and tour operators to reduce the impact on ticket prices after December 31, 2022, the date on which the the tax benefit of 5%.

In 2023, the National Consumption Tax (impoconsumo) will also be collected again, in establishments that are exclusively dedicated to the sale of food and beverages and that are registered in the Simple Taxation Regime (RST).

Because of the pandemic, The government of former President Duque exempted consumers from paying this tax to alleviate the pocket of consumers.

(Food and beverage businesses will charge the impoconsumption again).

With the expiration of the Social Investment Law, establishments will have to update the RUT, replacing responsibility 50 or 57, which says ‘Not responsible for consumption tax’, according to their legal nature, by 33, which is the ‘Responsible for the National Consumption Tax’.

La Dian announced the new provisions on the collection of this tax and recalled that those who evade it are exposed to sanctions established by law.

In the second half of the year, the digital connectivity subsidy, an economic aid granted to employees who worked from home, disappeared. With it, the aim was to support the payment of the Internet and other services to carry out functions from home, in the teleworking modality.

Howeverthis economic aid replaced the transport aid, since the same value was paid, and it was aimed at those workers who received a maximum salary of two minimum wages.

The unemployment protection subsidy with which a sum of money was delivered to workers who had lost their jobs during the pandemic also disappeared in the first part of the year.

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