New tax for thermal and hydroelectric companies would generate 70,000 million in revenue for the Government
From now on, hydroelectric and thermal power plants will have to pay more contributions to the government. Photo: Photo: Acolgen
TL;DR
- The Ministry of Environment has ordered a new tax on hydroelectric and thermoelectric energy generators, requiring an additional 2% of gross energy sales.
- The government states the funds are needed to address the economic emergency caused by floods in the Colombian Caribbean.
- This new tax, alongside a wealth tax, significantly increases the tax burden on energy companies.
- Industry estimates suggest the environmental tax could generate approximately $70 billion COP, and the wealth tax around $260 billion COP.
- Concerns are raised that these increased costs may be transferred to consumers, potentially leading to higher electricity tariffs.
- Industry leaders suggest alternative funding sources, such as the national disaster risk system budget and regional royalties, should be considered.
- The new environmental tax is set for a six-month period and will be evaluated by the Constitutional Court.
- Funds collected are designated for environmental and risk management measures to mitigate the effects of heavy rainfall.
- The Ministry of Environment will provide technical guidelines for the use of these funds, with CARs structuring projects in collaboration.