Taxation in Colombia is determined by the Congress of Colombia, the Department of Colombia Assemblies and the Municipalities of Colombia councils, which determine what kind of taxes can be levied and which rates can be applied. The country inherited a harsh and diffused taxation policy from the Spanish Empire characterized by a heavy reliance on customs duties, due to the relatively-low capacity for local production of goods. Both the national and local governments' budgets run significant deficits.
National taxes are administered by the National Tax and Customs Direction (DIAN). Some of these taxes include:
The value-added tax (IVA) is a variant of the sales tax. This tax is 16 percent of the price of merchandise, goods and services with some exceptions: public transportation, water supply and sanitation and the transportation of natural gas and hydrocarbons. The DIAN recognizes two separate categories (regimenes) of IVA: common and simplified. The first refers to businesses with estimated patrimony over 68 million Colombian pesos (about 34,000 USD), and the second refers to those with patrimony less than that. Although both are obligated to pay the same percentage, the simplified taxpayers are not obligated to conduct separate bookkeeping for the IVA or to generate invoices.
Colombia ( /kəˈlʌmbiə/ kə-LUM-biə, or /kəˈlɒmbiə/ kə-LOM-biə), officially the Republic of Colombia (Spanish: República de Colombia [reˈpuβlika ðe koˈlombja]), is a unitary constitutional republic comprising thirty-two departments. The country is located in northwestern South America, bordered to the northwest by Panama; to the north by the Caribbean Sea; to the east by Venezuela and Brazil; to the south by Ecuador and Peru; and to the west by the Pacific Ocean. Colombia has maritime borders with Ecuador, Panama, Venezuela, Jamaica, Haiti, the Dominican Republic, Honduras, Nicaragua and Costa Rica. Colombia is the 26th largest country by area and the fourth largest in South America after Brazil, Argentina and Peru. With over 46 million people, Colombia is the 27th largest country in the world by population and has the second largest population of any Spanish-speaking country in the world, after Mexico. Colombia is a middle power, with the fourth largest economy in Latin America, and the third largest in South America. Colombia is famous for the production of coffee, flowers, emeralds, coal, and oil. All of these products make up the primary sector of economy.
Pablo Emilio Escobar Gaviria (December 1, 1949 – December 2, 1993) was a Colombian drug lord. He was an elusive cocaine trafficker and a rich and successful criminal. In 1986, he had a short-lived career in Colombian politics.
Escobar was born in the village of Rionegro in Antioquia, Colombia, the third of seven children to Abel de Jesus Escobar, a farmer, and Hemilda Gaviria, an elementary school teacher. As a teenager on the streets of Medellin, he would begin his criminal career, allegedly stealing gravestones and sanding them down for resale to smugglers. His brother, Roberto Escobar, denies this, claiming that the gravestones came from cemetery owners whose clients had stopped paying for site care and that they had a relative who had a legitimate monuments business. He studied for a short time at the University of Antioquia.
Pablo was involved in many criminal activities — running petty street scams, selling contraband cigarettes and fake lottery tickets, and stealing cars. In the early 1970s, he was a thief and bodyguard, and he made a quick $100,000 on the side kidnapping and ransoming a Medellín executive before entering the drug trade. His next step on the ladder was to become a millionaire by working for the multi-millionaire contraband smuggler Alvaro Prieto. Pablo's childhood ambition was to become a millionaire by the time he was 22.