This is how the Development Plan proposed by Galán will impact the pockets of Bogota residents

This is how the Development Plan proposed by Galán will impact the pockets of Bogota residents
This is how the Development Plan proposed by Galán will impact the pockets of Bogota residents

Tax on public lighting, increase in parking rates and fire brigade surcharge are the three new income that the District seeks to obtain within the Development Plan project proposed by the administration of Carlos Fernando Galán. How are they going to affect the pockets of Bogota residents and what will they be used for?

(Also read: The 10 key bets for Bogotá in Mayor Carlos Fernando Galán’s Development Plan).

According to what the Secretary of the Treasury, Ana María Cadena, mentioned before the Council, these new proposals aim to increase tax revenue by 19% between 2024 and 2027, going from 54.8 billion to 65.2.

In addition, he said that they seek to increase the city’s investment possibility, going from 110.7 billion pesos to 114.1; that is, an increase of 3.4 billion pesos. “The expectations, needs, the scope of the plan required a greater effort,” he indicated.

The new resources They would be destined for the Fire Department, the public lighting service and the financing of monthly recharges in public transport. for vulnerable community.

The Mayor of Bogotá Carlos Fernando Galán files before the Bogotá Council the District Development Plan 2024 – 2027 Bogotá Walk Safely.

Photo:Milton Díaz / El Tiempo

Public lighting tax

The District proposes a tax to finance public lighting, which is authorized by Law 1819 of 2016 and seeks to improve technology and district capacity in this service, which, according to Cadena, will have a direct impact on security and crime reduction.

The secretary added that other cities such as Cali and Medellín have already implemented it, as have municipalities in the Sabana such as Chía and Tocancipá. “Bogotá is in default,” she said.

Street lighting contributes greatly to improving the perception of safety

It should be noted that the Council has previously rejected this tax arguing that, precisely, “public lighting contributes greatly to improving the perception of safety in the city and, therefore, it should be assumed by the District government,” says a statement. from Councilor María Victoria Vargas from 2016.

On the other hand, Cadena stressed that 30% of these fixtures have not yet made the transition to LED technology. In addition, he said that the telemanagement that will be implemented (that is, remotely controlling public lighting networks) will reduce costs by allowing faster action in the face of failures.

“The aim is to reduce consumption,” added the secretary, and said that at this time, when the level of the reservoirs has the country and the city raising the possibility of energy rationing, it is a “fundamental” factor.

This is how the rates would work:

  • Comercial establishment: 10% (around $53,716 pesos)
  • Industrial establishment: 10% ($110,173 pesos)
  • Official establishment: 10% ($193,664 pesos).
  • Stratum 1 and 2: 0%
  • Stratum 3: 5% (around $5,503 pesos)
  • Stratum 4: 6% ($6,729 pesos)
  • Stratum 5: 7% ($9,863 pesos)
  • Stratum 6: 7% ($13,757 pesos)

Parking fee

Cadena stated that Law 1753 of 2015 (modified by Law 2294 of 2023) allows a tax on off-street parking or parking lots for the sustainability of public transportation. In the proposal made by the District, the increase in the fare would be used to finance a monthly fare for vulnerable people.

Promptly, It is planned to implement between 20 and 30 monthly trips with a discount of up to 50% for the poor and vulnerable populationincluding older adults and people with disabilities (between 188,000 and 282,000 people)

The surcharge would be 17%

Photo:iStock

“Figures from the Ministry of Social Integration tell us that for a person in monetary poverty, 7% of their income is allocated to transportation services. The impact of being able to give no longer a differentiated rate but monthly recharges has impacts on satisfaction, productivity and less evasion of the system,” said the secretary.

He emphasized that it is already used in the cities of Medellín, Cali and Sincelejo. In the case of Bogotá, the surcharge would be 17%which means that if the maximum rate per minute were $163 and the minimum rate was $46, the contribution would be between 8 and 28 pesos.

On the other hand, the official said that This is linked to the decrease in informality in parking lots.so it will work with the Ministry of Mobility in that regard.

Firefighter surcharge

The District’s other proposal is ua 1% surcharge on the Industry and Commerce Tax (ICA)authorized by Law 1575 of 2012, to finance the activities of Firefighters: the comprehensive management of fire risk, preparations and attention to rescues in all modalities and attention to incidents with hazardous materials.

Firefighters in Bogotá.

Photo:Bogotá Firefighters.

In addition, a new station is being proposed, since no new equipment has been built for the Fire Department since 2007.

Cadena highlighted the increase in forest fires in the last year, because while in 2023 by this date 123 had occurred (affecting 25 hectares of forest), in 2024 there are 294 (with 193 hectares lost).

“This is a reality that we are going to continue seeing and that we are going to continue facing, it seems absolutely fundamental to us that Bogotá prepares for this structurally,” he stated, and said that in other cities the increase in other taxes such as that of taxes has been implemented. vehicles, property and urban delineation.

For microbusinesses, the average cost of the surcharge is between 8,000 and 33,500 pesos. For small businesses, between 60,000 and 227,000 pesos; for medium-sized ones, between 130,000 and 382,000 pesos and for large ones between 679,000 and 10 million pesos.

The questions

Omar Oróstegui, director of the Government laboratory at the University of La Sabana, said that these proposals end up “affecting above all the middle class, who have a vehicle, who are formalized, who live off commerce and who pay ICA (…) impact the economic dynamics of the city because the costs are passed on to the final consumer.”

He added that An alternative to avoid these cost overruns would be to present “a proposal for fiscal adjustment in the District’s expenses.” For example, in the case of public transportation, “adjustments can be made to the fare model” by evaluating the costs of the operation or further reducing evasion.

Furthermore, on the issue of public lighting, Oróstegui questioned whether it was done via a tariff and not through a fixed amount that is updated each year through the Consumer Price Index (CPI).

After it was filed, this issue will now be discussed in the Council, which during the month of May will have specialized sessions on each objective of the Development Plan, as well as debates in which they will make a decision on the project. “The mayor has a majority, but there are sensitive issues,” the expert concluded.

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