Colombia court upholds ruling allowing companies to deduct royalties from taxes

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BOGOTA - Colombia's Constitutional Court denied on Monday proposals from the finance ministry to modify a ruling that struck down a ban on oil and mining companies deducting royalties from their taxes, in a move the leftist government has said will force an increase in the 2024 fiscal deficit.

Finance Minister Ricardo Bonilla said earlier this month in testimony to the court that the striking down of the ban would require an increase in the 2024 deficit and a 10% rise in the issuance of domestic peso TES bonds this year, as well as a 5% increase in TES issuances between 2025 and 2034, to comply with fiscal rules.

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