Colombian Coffee Sector Worried Value-Added Tax Will Hit Coffee Exports

At a Glance (China Coffee Network): Colombia's plan to levy a 19% value-added tax on coffee and related products has raised exporters' concerns over cash flow and the sector's competitiveness.

According to Colombia’s La Republica on November 5, the government proposed levying a 19% value-added tax on green coffee, roasted coffee, coffee extracts and fiber sacks, raising concerns among coffee exporters.

Colombia’s National Coffee Exporters Association warned that the measure will strain the cash flow of industry enterprises and force them to advance about $708 million in taxes while waiting for refunds. The association said Colombia is the world’s third-largest coffee producer, with annual output close to 13 million bags, and the proposal will directly affect more than 550,000 coffee-farming families.

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