Colombian tax reform could deter investment, firms say

Colombia's proposed tax reform that aims to plug a spending gap may end up deterring investors already worried about the oil revenue decline that threatens future economic growth, company executives said.

Congress approved the first of two votes on the tax reform, which seeks to raise $24.5 billion in additional revenue over the next four years to replace money that would have come from two duties that expire at the end of the year.

Among the new proposals is an incremental increase in taxes on corporate profits above $462,000, and an extension of a wealth tax on corporate and individual assets also above $462,000. Each would run until 2018.

Source: Reuters