The Tax Reform approved last December in Colombia, will maintain the VAT exemption for plant sales in the country, said Jairo Cadavid, president of the Association of Colombian Nursery and Ornamental Growers, Colviveros.
The decision is taken in the midst of the fiscal adjustments the South American country must undertake from 2019 onward and responds to the Colombian vision of keeping the production of live plants free from the value added tax (VAT) as a strategy to stimulate the development of the green industry in the country.
This is a segment with a high growth potential that currently benefits around 35,000 families, mainly small farm producers, and is expecting a figure greater than USD21 million in exports by the end of 2018.
Since its creation two years ago, Colviveros has been leading an ambitious formalization process of the nursery sector in which nearly 4,000 small-scale producers and live plant marketing vendors participate. Nowadays, the Association counts with nearly 500 affiliates and has a presence in 12 departments across the country.