Colombia's Association of Bars, Asobares, rejected a potential economic emergency decree that would raise liquor taxes, warning it would boost smuggling and jeopardize thousands of jobs in the nightlife sector.
Colombia's Association of Bars, Asobares, voiced deep concern over the National Government's plan to declare an economic emergency to hike taxes on liquors. In an official statement, the guild argued that this measure would not boost fiscal revenues but instead lead to adverse effects like declining legal sales, strengthened smuggling, and product adulteration.
"The Association of Bars of Colombia, Asobares, expresses its deep concern and rejection regarding the eventual issuance of an economic emergency decree through which the National Government would seek to once again increase taxes on liquors, a measure that would represent a new and severe blow to formal commerce, employment, and the sustainability of the nightlife economy," the pronouncement stated.
The sector, encompassing bars, nightclubs, gastro-bars, and restaurants, is still recovering from the pandemic's impacts, inflation, rising labor costs and rents, as well as recent reforms that have significantly increased operational expenses. Asobares noted that around 1,680,000 direct and indirect jobs rely on this nightlife economy, with 28% held by young people and 54% by women. These positions invigorate tourism, culture, and gastronomy in cities.
The guild stressed that further taxing liquors endangers the viability of thousands of small and medium-sized family businesses operating on shrinking margins. It urged the Government to reconsider the initiative, initiate technical dialogues with guilds, and consider alternatives that do not promote illegality or destroy jobs. "We make a respectful but urgent call to the National Government to reconsider this measure," Asobares emphasized.
