Colombia Drops Planned VAT On Food

Colombia’s government is dropping its controversial 10% VAT on staple foods, put forward in its tax reform bill currently under review by the country’s Congress. The bill seeks to reform and streamline taxes and promote investment. Among changes sought by the government was the introduction of an additional level of VAT, rated at 10%, on staple foods. The VAT change was always likely to meet resistance in Congress as it will have a particularly strong impact on the lowest levels of society.