Colombia's tax change may impact Argos valuation

Colombia's tax change may impact Argos valuation
30 August 2021


Colombia's Congressional Economic Committees have voted in support of the tax change proposed by Iván Duque's government, a step that could impact the valuation of domestic cement producer Argos, according to a report by UBS.

The project, also known as social investment, targets an additional COP15.2bn (US$3.97m) to the state purse and UBS research expects a 35 per cent increase in corporate taxes and a 38 per cent in financial sector taxes. While the tax change is expected to improve Colombia's social and fiscal environment, UBS estimates a potential five per cent drop in Argos' valuation as a result of the increase in corporate taxes.

Published under Cement News