The oil industry contributed 10 trillion pesos to the country in 2017

According to the latest economic report from the Colombian Petroleum Association (ACP), the hydrocarbon sector contributed $10 trillion in taxes, royalties, contractual rights, among other contributions, in the tax year 2017.

• Companies dedicated to the exploration and production of oil and gas contributed 10 trillion pesos to the country in 2017 in tax matters.
• $3.5 trillion corresponding to income tax, $5 trillion in royalties, and $1.5 trillion in contractual economic rights and other contributions.
• Since 2010, the sector has generated $42 trillion just in income tax for the country.

 The report, prepared by the Vice Presidency of Economic and Regulatory Affairs of the ACP, indicates that of this amount, $3.5 trillion were resources corresponding to income tax, $5 trillion for royalties, and $1.5 trillion in contractual economic rights and other contributions, recording an increase of 54% compared to the resources paid in 2016.

The analysis delves into the total contribution of the activity to income tax, which grew 2.5 times compared to 2016 ($3.5 trillion 2017 vs $1.4 trillion in 2016), and shows that when adding other activities related to crude extraction (gas extraction, transportation by pipelines, refining, and distribution of liquid fuels), the sector contributed $7.1 trillion pesos in 2017, which represented 26% of the income tax contributed by more than 400 thousand companies in the country.

On the other hand, historically, the report records that since 2010 the crude extraction activity has contributed more than $42 trillion pesos in income tax to the country, being one of the most significant contributions of the industry in tax matters.

The contributions recorded by the hydrocarbons sector show the high participation of the Colombian state in oil revenue (Government take of 70%). “The oil industry is one of the sectors with the greatest capacity to contribute resources to the Nation, for this it is important to maintain current production levels and meet investment goals, only in this way can the sector continue generating the resources that support productive transformation, the economic reactivation of the country, and the development of the regions of Colombia,” emphasized the president of the ACP, Francisco José Lloreda Mera.

 

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