Columbia Nixed Plans to Levy Duty on Gold Exports

SEATTLE (Scrap Monster): Columbia announced that it has decided to withdraw plans to impose duty on gold exports.

According to country’s finance minister Jose Antonio Ocampo, the proposal to introduce tax was earlier part of the tax reform bill submitted by the new government led by President Gustavo Petro. As per the proposal there would have been a 10% tax on value of gold exports, whenever the prices of the yellow metal exceeded $400 per Oz. However, the bill will continue to have the proposal to end the ability to deduct royalty payments on gold production from income taxes, he noted.

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It must be noted that the gold sector in the country had raised concerns over the proposed duty, as they believe that such a duty measure would boost illicit exports and reduce investments in the industry. Moreover, it would impede the ongoing efforts to formalise small-scale and unofficial miners, they noted.

The government had proposed taxes on various commodities, in an attempt to generate additional money to drive anti-poverty schemes and several other social welfare schemes to the benefit of its citizens. For instance, the bill proposes to collect 10% tax on coal and oil exports, whenever the commodity prices exceed a certain price limit.