Colombia: 70% reduction of the tax on imported sugar
Colombia’s government decreed a 70% reduction of the tax on the import of white sugar and substituted goods, after a long discussion with the sugar association that opposed the tax decrease.
The decree of 27 November 2293, will take effect from December 15th and is under evaluation by the national government over the next three years in order to measure its economic impact and thus make new decisions on the measure.
Workers in the cane industry state that the whole sector will be affected by the decree. They say that at this moment over ten thousand monthly tons of sugar are entenring Colombia and if taxes are lowered it could affect more than 90% of the production of the country.
The sugar industry didn’t supported the reduction either, because the country has the second lowest rate in the region and it could affect the markets, which without state protection, would force domestic enterprises to reduce their costs to compete.