Cúcuta Mayor proposes VAT exemption to boost local economy

The Mayor of Cúcuta, Jorge Acevedo, has proposed an urgent VAT exemption to revitalize the local economy in response to a significant decline in commercial sales. The proposal requests that the national government exempt essential goods from the current 19% VAT rate to stimulate activity along the border region.

The initiative aims to counter economic stagnation caused by the recent devaluation of the dollar, which has reduced the influx of Venezuelan shoppers who traditionally drive local commerce. The administration noted that a similar tax exemption implemented in 2015 for food, clothing, and footwear successfully boosted regional consumption.

Currently, Cúcuta faces high social vulnerability with an informal employment rate near 60% according to DANE. The mayor's proposal seeks to protect local jobs and boost the strategic year-end holiday season. The request has been directed to the National Planning Department to be conveyed to the presidency, with the goal of implementing the relief through December 2026 to provide long-term stability for merchants.