At the closing of the annual Asobancaria congress that took place in Cartagena, president Gustavo Petro He referred to the economic situation that the country is going through. This has led the Government to adopt a plan to cut spending in the face of the deterioration in tax collection.
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In this context, the president pointed out that this definancing is explained by an error in collection matters. According to him, by a decree of 2023, large taxpayers paid their taxes in advance, which resulted in the result reported by this item in the first months of this year.
“We must talk about the drop in tax collection in these months that we have lived through, not all tax collection fell… It has fallen compared to last year, but not compared to the ancestor. Last year was exaggeratedly high in tax collection. And here we have to say why, because there was a mistake by the Government. The Constitutional Court is right about that.”he indicated.
The head of state explained that at the beginning of last year, in an attempt to show the success of the then recently approved tax reform, a decree was issued that increased income tax advances and withholding at source.
”Large taxpayers already paid the tax last year. And then we are underfunded, simple as that. “That’s why the Minister of Finance cut spending,” he added.
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Given the complex fiscal panorama, President Petro anticipated that the Government is considering bringing to Congress a package of projects that are aimed at reactivating the economy.
Within these possible avenues he mentioned that a “forced investment” strategy is being discussed with the support of private banks. “I lean towards forced investment, towards housing, industry and with an emphasis on exports,” stood out.
He also suggested that, in the face of stagnant spendingthere is another way “and it is called credit granted by the government through institutions that are already there. While I have to stop spending, we can increase the credit derived from public institutions.”
For the president, the issue involves a financial sector that has to make forced investments in credit, but the State assumes the risk of payment. “The payment from the State to the bank is less risky. We have a better horizon as to whether the bank is left with the obligation to assume the risk”he added.
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