Box 3: Central Bank Communications in Response to Changes in the Value Added Tax: The Cases of Australia, New Zealand, Norway, the United Kingdom and Canada
Keep in mind
The Monetary Policy Report presents the Bank's technical staff's analysis of the economy and the inflationary situation and its medium and long-term outlook. Based on it, it makes a recommendation to the Board of Directors on the monetary policy stance. This report is published on the second business day following the Board of Directors' meetings in January, April, July, and October.
AUTHOR OR EDITOR
Nicolás Martínez
Mariana Escobar
Juan David Torres
Daniela Pinilla
The recent tax reform in Colombia, which was passed in December 2016 and took effective as of January 2017, with the maximum deadline for adoption being February of the same year, implies an upward shock to the prices of most products marketed in the country. As mentioned in other sections of this report, a bullish impact on the consumer price index (CPI) is anticipated, either because items that make up the index are subject directly to the reform or because they respond, in some way, to other taxed items (via costs or indexing).
