Summary.
The law reduces the consumption tax on specified gasoline grades and light diesel for 120 days, with the reduction reflected in consumer prices. It also regulates temporary price controls for certain products.
What it covers.
- The temporary reduction of the consumption tax on fuels.
- The reflection of the tax reduction in consumer prices.
- Conditions for temporary price controls on certain products.
Who it applies to.
- Consumers of the fuels covered by the tax reduction.
- Consumption tax collection agents.
- The Ministry of Economy and Finance (Ministerio de Economía y Finanzas) and the Office of the Comptroller General (Contraloría General de la República).
Key points.
- For 120 days from promulgation, the tax per gallon on 91- and 95-octane unleaded gasoline falls from 0.60 to 0.40, and the tax on light diesel falls from 0.25 to 0.15.Art. 1
- Surplus current revenue from the application of Law 6 of 2005 replaces revenue lost through the tax reduction; the Ministry of Economy and Finance and the Office of the Comptroller General make the corresponding fiscal adjustments.Art. 2
- The reduction directly affects the consumer sale price, and consumption tax collection agents cannot retain it.Art. 3
- Temporary price controls require reasons and a supporting basis for products subject to an applied import tariff above 40% ad valorem. For hydrocarbons, petroleum products and basic necessities, adequate grounds suffice without that tariff threshold.Art. 4
Validity and changes.
- Tax Code (Código Fiscal)Art. 5: temporarily amends article 1057-G
- Law 29 of February 1, 1996 (Ley 29 de 1 de febrero de 1996)Art. 4: amends the second paragraph of article 242