Comptroller questions use of CO2 tax resources
In a press release, the Comptroller General of the Republic questioned the use that is being given to the resources raised by the national tax on carbon (or CO2) and the excise tax on plastic bags.
The C02 tax is aimed at reducing the greenhouse gas emissions produced by the consumption of fossil fuels and for the final consumer is reflected as an additional value in the price of fuels.
The regulation foresees that if a company is a consumer of a liquid fuel, natural gas or Fuel, and develops programs of reduction of consumption can obtain these bonds of carbon or by reduction of CO2, which can convert to money. Contact US and we will explain how.Contact us
The Comptroller considers that the destination that has been given to the resources is unfortunate.
In the case of carbon-CO2 tax, currently, with the so-called “Páramo Law” (Law 1930 of 2018), the monies collected are directed to the Colombia in peace fund, are budgeted in the section of the Ministry of Finance and Public Credit and only the 30 is destined To environmental issues, while the 70 is devoted to the implementation of the Final agreement signed between the national government and the FARC-EP extinct.
According to DIAN, at November 2018 the collection for this concept amounts to $294 billion pesos.
Several studies have shown that demand for fuels is inelastic and therefore the increase in the final price generated by the CO2 tax will not necessarily result in a decrease in consumer demand. Consequently, the impact of the tax on the reduction of emissions-and their negative externalities-will tend to be low.
The Comptroller also assessed the management and results obtained with the environmental tax incentives and determined that there is a high degree of uncertainty about their effectiveness. Nor do you know with the total value of the lower tax revenue you have because of this type of incentive, and to quantify it under the current conditions is a very expensive process.
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