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Bars and restaurants ask for delay to reactivate taxes

Bars and restaurants ask for delay to reactivate taxes

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1. Debate on reactivation of VAT taxes and excise taxes

According to the commentator Nathalia Morales, last September 6, the papers for the second debate of the social investment project were filed in the Secretariats of the Chamber of Representatives and the Senate of the Republic, where two articles were included seeking to exonerate the VAT and the excise tax payment for next year to the restaurants and bars belonging to the Simple regime.

However, the president of Acodres, Guillermo Henrique Gómez, pointed out in a letter that the industry has not yet recovered from the repercussions of the pandemic and estimated that the VAT and excise tax reactivation would make services 25% more expensive.

2. Many jobs would be at stake

Likewise, Gómez pointed out that the jobs of more than 200,000 people are at stake and that returning to full tariffs in 2020 is equivalent to losing the efforts of the Government and Congress with the approved announcements in the Law of Tourism.

Finally, he pointed out that the gastronomic industry generates 8% of the country’s employment, with 63% of women and 29% of young people.

“If Colombia does not prioritize the recovery of employment and avoid the closure of establishments, especially from a business formality scheme, the economic recovery of the country will be postponed,” concluded the president of Acodres.

Source: La República 06/09/21

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