The Ministry of Finance revealed that tax benefits in Colombia make up to 8.7 points of the gross domestic product (GDP). This is $26 billion ( COP 92.4 billion). Cuts, exemptions and differential rates constitute 81.1 % of all benefits, or $21 billion (COP 74.9 billion).
In January 2021, manufacturing production in Colombia dropped by 1.6% compared to December 2020, revealed DANE. This variation is explained by a substantial drop in the production of vehicles (-48.3%) and iron ( -17%). In contrast, electrical appliances and equipment grew by 15.2%, chemical substances 13.9%, and health products 9.8%.
Today, Colombia has 120 free trade zones, of which 41 are permanent and 79 special. Over the past 13 years, these zones have generated more than 136,000 jobs and investments for about $13 billion (COP 48 billion). The government expects to change the current law for free trade zones to include industries that export non-tangible services.
Morgan Stanley raised Ecopetrol's target price from $14 to $ 18.40, considering the eventual acquisition of Interconectado Eléctrica SA (ISA). Likewise, Bank of America increased it from $9.9 to $ 16.50 per share.
BNP Paribas projects that the current tax reform bill would not increase revenues by more than 1% of GDP. With this, the country will not achieve its goal of a 2.5% deficit by 2022. The bank expects the authorities to lower the fiscal target (closer to 5% of GDP) or extend the fiscal rules' current suspension.