Parliament green-lights nixing VAT for internet services for lower-income strata

Friday, December 17, 2010

Colombia's parliament has approved a bill to eliminate value added tax (VAT) on internet services for the lower-income segments in the country, the government said in a statement.

According to the government, this decision coincides with the implementation of a digital inclusion plan called "Vive Digital," which has the goal of reaching 8.8mn broadband connections nationwide in four years compared with today's 2.2mn.

This initiative will promote the expansion of infrastructure as well as applications development, which will benefit end-users, the government said.

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"The approval of the elimination of VAT for internet services in social strata 1, 2 and 3 is a very important step toward the implementation of Plan Vive Digital," the country's IT and communications minister Diego Molano Vega said. The minister had previously indicated that the three strata make up 88% of the country.

This digital inclusion plan is focused on lower-income segments of the country, the government said.