Bogotá Council approves tax reform and public lighting charges

The Bogotá Council has approved a tax reform aimed at transforming the capital into a smart city. Mayor Carlos Fernando Galán stated that the agreement includes modifications to the Industry and Commerce Tax (ICA) and introduces a modernization plan for public lighting.

According to the administration, the reform will benefit 83% of businesses and 89% of industries through ICA reductions. Specific decreases include 3.4% for neighborhood food stores, 13% for hotels and restaurants, and 20% for bars. Small businesses are reportedly exempt from tax increases.

However, the reform has faced criticism regarding its impact on taxpayers. Opponents argue that the new public lighting charge and ICA adjustments constitute new fiscal burdens for strata 4, 5, and 6, as well as for industries and commercial properties. Critics suggest these measures contradict campaign promises to avoid new taxes and may discourage investment in the city.