The federal government of Colombia has revealed that it’s planning to launch a digital foreign money to curb tax evasion and improve the traceability of residents’ transactions
The plan for the digital foreign money was revealed by means of an announcement 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 direction of digitizing their economies to raised perceive and management the circulate of cash.
In line with Reyes, this is able to be one of many proposals of the newly inaugurated president Gustavo Petro to curb tax evasion which is presently estimated to be between 6% and eight% of Colombian GDP. In essence, the digital foreign money 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 comply with the introduction of the digital foreign money is the restriction of money funds over $2,400 (10 million Colombian pesos).
Whereas the federal government is concentrated on curbing tax evasion, the adjustments may disrupt the fee channels of a majority of Colombians, particularly after the money crunch attributable to the Covid-19 pandemic. Colombians are additionally presently depending on money transactions and shifting to digital funds might be tough.
In line with information from the Monetary Superintendency, Colombians want money as their principal technique of fee technique for groceries and transportation.
However the Central Financial institution of Colombia has proven that the circulation of payments has shot to the heist stage previously seventeen months.