Colombia tax reform's EfectIVA mechanism burdens poorest women with financing costs

Colombia's EfectIVA tax-rebate mechanism forces low-income individuals, disproportionately women, to front the state's cash-flow costs while awaiting refunds that take weeks. The report highlights a distributional flaw in the reform, though the scale and fiscal impact remain unquantified. This matters as it could fuel political opposition to the reform and affect social stability.

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