Colombia will have its first VAT Free Day of 2022 two days before the congressional elections
Mayurlis Bayona, manager of a sportswear store, located at carrera 37 in the center of Bucaramanga, was taken by surprise by President Duque's announcement, on Saturday afternoon, of the first Day without VAT of the 2022.
"I don't know how people will take it because the beginning of the year starts with a lot of expenses, the savings are few and the cost of the basket is through the roof."
He considers that these discount days are good for raising awareness of the brand, boosting digital sales channels, but not for increasing business income. "This measure ends up being beneficial for large stores, not for small businesses."
New
This first day without the value added tax will take place on March 11, two days before the legislative elections, in which Colombians will elect senators and representatives to the Chamber. The consultations of the coalitions for the Presidency will also be carried out.
Most working families will receive automatic payments – no sign ups needed, all you need to do is make sure you've… https: https://t.co/UOS20ZJKFa
— President Biden Mon Jun 21 12:30:00 +0000 2021
Likewise, the focus of this first day without VAT will be different, that of last year was to recover consumer confidence and boost trade. This time, according to President Duque, it is for merchants to get out of inventories and for money to flow.
Read: The Colombian textile industry grew by 5% in 2021, according to Inexmoda
Analysis
Financial analyst Diego Palencia indicates that the economic challenges of the pandemic have led to unconventional incentive plans, such as days without VAT. He hopes that with this the economy will take off.
The economist Mateo Rivera considers that it is pertinent to make an analysis of public finances, since there are negative effects on tax collection, even more so in these moments of afugias. “The days without VAT have boosted consumption, even during the 2020 and 2021 days, historical figures were recorded in billing. Consumption has been a driving force behind the reactivation”.