The federal government of Colombia has revealed that it’s planning to launch a digital forex to curb tax evasion and improve the traceability of residents’ transactions
The plan for the digital forex was revealed by way of a press release given by Luis Carlos Reyes, who’s the top of the Colombian tax authority DIAN. The transfer comes amid a transfer by many international locations in the direction of digitizing their economies to raised perceive and management the movement of cash.
In response to Reyes, this is able to be one of many proposals of the newly inaugurated president Gustavo Petro to curb tax evasion which is at present estimated to be between 6% and eight% of Colombian GDP. In essence, the digital forex will improve the traceability of retailers’’ transactions to make sure that they don’t evade taxes.
Money funds restrictions
Among the many different measures anticipated to observe the introduction of the digital forex is the restriction of money funds over $2,400 (10 million Colombian pesos).
Whereas the federal government is concentrated on curbing tax evasion, the modifications may disrupt the cost channels of a majority of Colombians, particularly after the money crunch brought on by the Covid-19 pandemic. Colombians are additionally at present depending on money transactions and shifting to digital funds could possibly be troublesome.
In response to knowledge from the Monetary Superintendency, Colombians favor money as their most important technique of cost technique for groceries and transportation.
However the Central Financial institution of Colombia has proven that the circulation of payments has shot to the heist degree up to now seventeen months.
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