A longer term is contemplated for the payment of income tax: until November 2021. The “United for Colombia” program of the National Guarantee Fund (FNG) will also be extended.
The National Government announced tax relief for a productive sector of the country and the extension of social assistance for lower-income Colombians. The announcements were made by President Iván Duque from the facilities of the Nativa Produce company in the municipality of Cota, Cundinamarca.
The president announced that for micro and small companies that had to pay income tax in June and November, the “tax schedule” is being run so that they can do so in a single payment during the first week of November.
The term for the payment of the income tax of micro and small companies will be moved from two installments in June and November to a single one that will be paid between November 9 to 23 of this year.
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“This allows to alleviate an important part of the cash flow for several months so that they can reactivate and improve all their capital,” said President Duque, who was accompanied by several of his ministers and government economic officials, union leaders and businessmen.
The new package of measures is aimed at supporting the country’s companies through a variety of instruments that seek to boost the business fabric and the productive apparatus. These grants seek to support agricultural companies and micro and small societies as they are the ones that most need additional support due to the impacts that the pandemic and the social situation have had on their finances and operations.
The Minister of Finance, José Manuel Restrepo pointed out that “it is urgent that the country’s business sector be revitalized to achieve the reactivation that the country needs, for which an invigorated and strengthened productive sector that marks the economy is indisputable.”
He announced that it is the first of several measures, because “we are constantly working for the benefit of all Colombians.”
Likewise, the Minister of Agriculture, Rodolfo Zea Navarro, stated that the ‘Together for the Field’ program will continue, which has a special financing chapter. This year, loans will be granted with a subsidized rate of $ 1.5 trillion through the Special Lines of Credit (LEC), aimed at small and medium producers.
“Our Financial Relief Law has the possibility of benefiting 250,000 producers, through 100% forgiveness of current and delinquent interest, and capital cuts of up to 95% for small producers,” said Zea Navarro.
Follow the news of El Espectador on Google NewsIn addition, the National Agricultural Development Credit System has $ 15 billion available to be used in investment, working capital or portfolio normalization, both for small, medium and large companies, prioritizing small producers who will be able to access a guarantee of up to 80%.
For its part, the Ministry of Commerce, Industry and Tourism will implement a Bancóldex financial support plan for $ 700,000 million through three programs with favorable rates and terms, as well as a grace period of up to 1 year.
The first will be for $ 200,000 million to strengthen the direct credit line for SMEs, the second for $ 100,000 million to support micro-businesses, micro-businesses, entrepreneurs and independent workers for investment, working capital and substitution of liabilities, and the third a rediscount line ” Colombia ahead ‘for all companies with a quota close to $ 400,000 million.
The announcements include a special $ 1.2 trillion line of credit with subsidized interest rates of $ 100.5 billion.
The United for Colombia program of the FNG is extended
Until December 31 of this year, the lines of credit guaranteed by the State for working capital, microfinance institutions and independent workers of the ‘Unidos por Colombia’ program of the National Guarantee Fund (FNG) will be extended.
With this expansion, it is expected to guarantee an additional $ 10 billion in credits, of which 75% will be part of the United for Colombia program and the remaining 25% to pre-pandemic or traditional FNG products. This will be in addition to the $ 24.4 trillion in credits that have been guaranteed since April 2020 to date.
Coverage for microfinance is 75% for formal and 60% for informal. The working capital lines will have coverage of 80% for micro and small companies , and 70% for medium-sized companies. As for independent workers, they will have access to 70% coverage. The lines will continue to have a subsidy to the commission granted by the National Government.
“To strengthen support for micro-enterprises, the maximum term associated with the credits guaranteed by the FNG, of the Formal and Informal Microfinance line is extended from 36 to 60 months, in order to alleviate finances and contribute to the recovery of these companies, “said the entity in a statement.
Tax reform
The president of the Colombians stressed that the government is working to present “quickly” to Congress the financing law that will allow it to obtain resources for social programs. They are resources, some permanent and others until December, that will be needed, said Duque.
The presentation of the reform implies that the Solidarity Income program can be maintained until December 2022, that the Formal Employment Support Program (PAEF) can be financed by helping with 40% or 50% of the legal minimum wage of the workers until December of this year.
Free higher education for students in levels 1,2 and 3 is also permanently sought. And have differentiated credits for SMEs and extend incentive programs for the hiring of young people between the ages of 18 and over for more than a year. 28 years, said the Colombian president.
“We are taking important steps of reactivation so that Colombia can move forward, and with the measures of the care program for the effects of the pandemic and the blockades, our country can move forward,” said Duque. He reiterated that “Colombia needs safe reactivation, mass vaccination, care for the most vulnerable, support the youth of our country and stabilize the finances of the Nation,” said Duque.
For more information: Unemployment rate in Colombia was 15.1% in April 2021
The president of Fenalco, Jaime Alberto Cabal, recognized the importance of the measures announced by the government, while insisting that the commerce sector has been one of the hardest hit during the pandemic and also during this last month of the unemployment of the blockades, looting, vandalism and we consider it essential for the recovery of employment ”.
He called for the creation of special bonds to help merchants who have lost everything, those who had to close due to the pandemic and vandalism and who want to reopen and have another chance at a business life.
Finally, the Minister of Finance said that “we are with the purpose of the safe reactivation of the economy.”