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Colombia's oil industry defends tax system as politicians clamor for increase in rates

Friday, March 16, 2012

Leaders of Colombia's oil industry urged the government to keep tax rates stable for the sector amid growing insistence by politicians that energy firms pay a greater share of their earnings to the nation.

A group of legislators want President Juan Manuel Santos's upcoming tax overhaul proposal to include royalty and tax hikes on the oil industry, which is one of the fastest-growing in the region thanks to improved security under a US-backed military crackdown on Marxist rebels.

Sector representatives say hiking taxes could limit the competitiveness of the country's oil and gas projects, which already face challenging logistics due to limited pipeline capacity in key production areas.

Source: Reuters