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POLITICAL, GOVERNMENTAL AND LEGAL VARIABLES

 

n 2. Changes in tax laws

 

The tax reform (Law 1607, 2012) implemented for mobile phone service a new national consumption tax at a rate of 4% to be applied to the entire service, not including VAT, which will be used for promotional plans and development of the sport.

The collection of this tax will go to 75% for the sector plan development, promotion and development of sport and recreation; for sporting venues including hits in the catchment areas of the same, and for the attention of national sports games, National Paralympic games, the Olympic and Paralympic commitments acquires Nation cycle and the preparation and participation of athletes in all these games and the single national calendar.

Of all these resources should be allocated at least 3% for the encouragement, promotion and development of sport, recreation athletes with disabilities and cultural and artistic programs of cultural managers and artists with disabilities.

 

Below are mention the seven changes occur in tax law in 2014.

 

  1.  1. Personal and family minimum increase and the creation of tax benefits for large families and people with disabilities.

  2. 2. Taxation of savings is implemented, the fee depends on the amount.

  3. 3. The taxation of severance pay and delivery of shares of the company to its employees is modified.

  4. 4. Yields economic activities are modified.

  5. 5. Deduction and reduction is implemented by the rental housing.

  6. 6. New tax in corporation.

  7. 7. Changes in tax VAT.

 

The factors mention are really important to companies of service because the monetary capacity and consumption increases with the increase in salaries and other aid given to a group of people, in this case with disabilities. This allows people to consume and acquire new services. However, the rise and various changes in the VAT tax affects negatively because people must pay more for it, which would reduce the consumer capacity to buy and acquire new products and services.

 

http://noticias.juridicas.com/actual/4359-las-diez-claves-de-la-reforma-fiscal.html

 

 3.Special tariffs

 

In Colombia the key important taxes that entities must be attend to are the:

-Rent: 25%

-Occasional earnings: 10%

-Income taxes: 9%

-Consumption tax: 4%,8%,16% 

-Financial transactions: 0.4%

Those main taxes are the ones that any person will be attend to, also are the ones that most companies related with the parking lot business and any kind of way of transportation may pay and be up to date. 

 

 

 

 4.Political action committees

 

The PAC's are the new figure through which shall be defined in all regions, the issuance of guarantees to candidates, conduct or no internal consultation and strategies party with a view to the elections of October. (Partido liberal, 2014)

 

This is important as these committees are responsible for defining various issues of political choice. This can affect servicies companies because the measure taken by each government or candidate affect the social structure, different scopes and policies taken for each sector of the economy. In this case any action or regulation against the sector of transport will have a major impact on the sector.

 

http://www.partidoliberalcolombiano.info/SaladePrensa/Publicaciones/Noticias/TabId/59/ArtMID/445/ArticleID/9007/Con-los-Comit233s-de-Acci243n-Pol237tica-inicia-proceso-de-reorganizaci243n-del-Partido-Liberal---.aspx

 

 

 5. Voter participation rates

 

The voter participation rates measure the quantity of votes in a period of time, taking into account different factors.

 

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In Colombia people eligible to vote are 32.8 million. At the polls recently attended more than 14.3 million citizens taking into account the number of votes in the Senate. This constitutes another defeat for democracy because, as seen, over half of the population does not exercise its right.  (Abstencionismo, otra vez protagonista, 2014)

 

The figures show that although the electoral roll grew from 1958-2010, an average of 1,893,699 citizens in every presidential election, ie approximately 7.69% by presidential period and 99.97% in the last 52 years , political participation has always fluctuated over 56.52%.

These rates show the participation of citizens in the electoral period, the fluctuation in comparison with past years.

 

This factor has a very similar impact like the factor of political action committees because the elected representatives will be responsible for making decisions in different areas of the country. People through their vote are those who elect therefore any action taken by the government may negatively or positively benefit service companies.

 

http://www.procesoselectorales.org

 

 

  1. ​6. Number, severity, and location of government protests

 

Expressions of dissent have each context of time and space, but I can say that in Colombia the strikes and protests are ineffective because the interests that lie behind this protest because usually there is a thirst for power from those who try to manipulate the movement, as well as the ones with good, both just want to be benefit from the movement.

The level of protest in Colombia are innumerate due to the big issues that each sector and industry of the country presents. 

The agriculture industry, production and education are the higher level of protest presented in the country, actually this factor affects sports when they have damages in structural locations or materials due to incidents and violent disturbs. 

 

In 2014 the most relevant protests were because of the ways of transport. Among these are the stoppage of conveyors in Bogota and protests by rising ticket in trasmilenio. In 2015 protests were recorded for the day without a car without motorcycles. (El tiempo, 2014), (Caracol, 2014), (El tiempo, 2015),

This factor affects directly services companies of transport because the disagreements on the transport system represented in protest could benefit other means of transport.

 

taken from : http://www.elespectador.com/noticias/nacional/colombia-el-pais-de-patentes-articulo-418418

 

 

 7. Number of patents

 

A patent is a title granted by the government of a country that gives the holder the right to prevent others a certain time manufacturing, selling and / or commercial use of the protected invention. (Patente de invencion y patente de modelo de utilidad, 2010)

In Colombia in the last 10 years has generated annual average 25 patents

(Alcaldia, 2014)

 

 

 

 

 

 

 

 

 

 

 

This factor don’t affect the service companies of transport.

 

Bogota: Ministerio de industria y comercio.

 

 8.Changes in patents laws

 

It may be the growth rate of the economy, the increase in foreign capital flows, the arrival of new international competitors, signing multiple FTAs. One or all of them, the fact is that in recent years Colombia has experienced an increase in the number of applications received for recording both patents (related to inventions or industrial designs, among others) and logos (the properties of a product as a brand advertising slogan, etc.).

 

According to figures from the Superintendence of Industry and Commerce (SIC), the agency responsible for advancing these procedures, patent applications increased from 1,800 in 2009 to 2,300 in 2012, representing a growth of 28%; showed the same behavior in applications to trademark, as 22,000 applications received in 2009, the last year recorded 31,000 (growing by close to 41%).

 

 This significant growth is making a change and adding value to the creation of new goods and technology that at the same time help the economy of the country financially and in terms of advance.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   9. Environmetal protection laws

 

 

Environmental regulations is defined as the set of objectives, principles, criteria and guidelines for the protection of the environment of a particular society

With Colombian Political Constitution of 1991 rises to constitutional rule the consideration, management and conservation of natural resources and the environment, through the enactment of the Right to a healthy environment and sustainable development: Articles 79 and 80. In these and other items rights proclaims not only also the duties of the state and people to protect natural resources, the environment and ensure their conservation.


The Environmental Information System of Colombia (SIAC) advances in the consolidation of this tool that seeks to articulate environmental information resources of the entities of the National Environmental Information System (SINA) and linking entities allied national and regional order.

(SIAC, 2014)

 

This factor affects services companies because those companies should be governed under this policy because their actions affect directly the environment. Pollution levels are very high so there are many restrictions in this sector. However it can also promote new means of transport go green. 

 

SIAC. (2014). Normativa Ambiental de Colombia. Bogota.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

To comply with objectives and targets of Act 99 of 1993, which created the system in Colombia National Environmental "ensure the adoption and implementation of policies and plans, programs and respective projects, in order to ensure compliance with the duties and rights of the State and of individuals with regard to the environment and the natural heritage of the nation. "Moreover the Sports Act, Act 181 of 1995: National Sports System, COLDEPORTES considers relevant to its mandate, contributing in their management scheme, elements and environmental criteria that contribute to the consolidation of sustainable endogenous development and SINA. The standards governing the Environmental Policy are:

 

Compliance with environmental laws and regulations, and others that the entity deems fit to link Develop systems of continuous improvement and best environmental practices, minimize, reduce and offset the environmental impacts and risks of their product governance.

 

Promote and disseminate environmental awareness in sporting arenas, performing sports, sports training and promotion within its organizational structure, members of the National Sports System and other stakeholders.

The implementation and promotion of physical education to contribute to the integral development of the person in all ages and provide effective compliance of its obligations as a member of society. it is thanks to this, where the sport may influence the formation of people with social and environmental responsibility.

 

 

 

 

  10. Government fiscal and monetary policy change

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Colombia’s monetary policy is based in maintaining a low and stable inflation rate with a maximum sustainable growth of the economy and the develop of more employs looking for the welfare of the entire population. The industry can take advantage of this as in industry services we need more people to do the jobs and this will generate more employees following the monetary policy.

 

Inthe other hand, the fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy and it looks forward to achieve high levels of growth, inflation and employment rates.

 

http://www.banrep.gov.co/es/politica-monetaria

http://www.investopedia.com/articles/04/051904.asp

http://www.banrepcultural.org/blaavirtual/ayudadetareas/economia/econo46.htm

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  • 11. Political conditions in foreign countries

The huge and fast development of some countries during the last years have lead us to the big political crisis  the world is living nowadays. 

United States and European countries are facing not only an economic crisis but also a geopolitical crisis because of the imperialist development of their states.

 

Countries like Venezuela are in the bottom of the situation facing conditions of extreme poverty as a cause of dictatorships reflected in the living conditions of their habitants. 

 

https://sites.google.com/site/situacionpoliticamundial/home/situacion-politica-internacional

 

  • 12. Lobbying activities

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Lobbying is the act of attempting to influence business and government leaders to create legislation or conduct an activity that will help aparticular organization. This lobbying activity is not very significant in Colombia yet.


http://www.elnuevosiglo.com.co/articulos/2-2013-cabildeo-aún-entre-sombras-en-colombia.html

http://www.businessdictionary.com/definition/lobbying.html#ixzz3ShYwyHW2

 

  • 13. Size of government budgets

 

According to the government budgets, in Bogota there is more investment in education and health; and less investment in movility issues. 

 

This is something that affects our industry because it is the one that less investment receives from the government

 

http://www.sdp.gov.co/portal/page/portal/PortalSDP/Home/Noticias/OtrosDocumentosArchivados/PlandeDesarrollo/Inversion_entidades_2012-2016_SDP.pdf

 

  14. Location and severity of terrorist activities

 

Colombia nowadays is considered as one of the 20 most terrorist countries in the world. Even if the government of the actual president Juan Manuel Santos is doing the peace treat with the terrorist group FARC the attacks against Colombians have increase from 99 in 2012 to 115 in 2013, increasing the social insecurity across the entire country.

 

http://www.elcolombiano.com/en-terrorismo-colombia-esta-entre-los-20-peores-del-mundo-LM842793

 

 

   15. Local, state, and national election

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People in Bogota and in Colombia have a democratic state, where they vote for their mayor or president according to the different ideas the candidates propose.

 

During the last decade the presidents in Colombia have been: Juan Manuel Santos (2010-1018), Alvaro Uribe Velez (2002-2010), Horacio Serpa (1998-2002), Ernesto Samper (1994-1998) and Cesar Gaviria (1990-1994).

 

During the last six years the mayors in Bogotá have been: Samuel Moreno Rojas (2008-2011), Maria Fernanda Campo (2011), Clara Lopez (2011) and Gustavo Petro (2011-2014).

 

This information show us that there is a changing political environment in the city, which affect the industry as there are new laws and new policies which each political party, having to face more changes to accomplish this new laws.

 

 

http://www.eltiempo.com/Multimedia/galeria_fotos/bogot7/GALERIAFOTOS-WEB-PLANTILLA_GALERIA_FOTOS-13870255.html

http://spanish.peopledaily.com.cn/31617/7003848.html

http://www.banrepcultural.org/blaavirtual/ayudadetareas/poli/poli25.htm

1.Government Regulations

 

Public regulation refers to the decrees, rules and laws that state applies for normal development in all competitions. Public regulation depends watchdog each state agencies. Government regulations in the sports industry mainly ensure that the committees follow the territorial plan and keep the comply with the proposals made by COLDEPORTES, sanitation and operation, including business entities such as gyms, personal trainers and sports academies.

 

 16. Legislation on equal employment 

 

This law aims to ensure equality bed salary and all forms of labor remuneration between women and famines fix mechanisms by which such equality is real and effective both in the field public bed in the private and establish general guidelines that allow eradicate any discriminatory manner on labor remuneration.

 

 17. Equality of men and women workers

 

All workers and women are equal before the law, have the same protection and guarantees, was thereby abolished any distinction couple because of the nature intellectual or material work, the way to pay, the gender sex saves the few exceptions established by law.

 

 18. Antitrust legislation 

 

This articulated seeks to be in contact with the market of mobile communications in the country creating 30 percent participation of companies, no company could have a number of customers who exceed such percentage of total mobile users in Colombia.

 

The project under discussion seeks to prevent a provider of telecommunications networks and services, directly or indirectly, may have an interest greater than 30 percent of the market (customers and accounts), portion, according to the bill.

According to this legislation it looks for equality in the percent of participation of big companies in Colombian economy, this is a way to control and give the opportunity to other operators and mobile users to distinguish other brands and be able to use services with the same proposal.

 

This decrete is far related with the sports industry, the most implicated are the mobile companies and its percent of participation.

 19. Colombian EEUU relationship 

The United States has historically been the main trading partner of Colombia. relationships trade between the two countries have maintained growth and diversification sustainable in recent years. This positive relationship between the two countries has led to consolidation issues such as the implementation of NAFTA, the help in the fight against drug trafficking and terrorism, the investment climate, opportunities in higher education, among others. Additionally, US policy toward Colombia supports the efforts of the Government of Colombia to strengthen democratic institutions, promote respect for human rights and Rule of law, promote socio-economic development, address the needs immediate, and end the threat to democracy posed by narcotics and humanitarian terrorism. To continue to promote security, stability and prosperity in Colombia, Americans continue long-term interests in region.

 

 20. Colombia Russia  relationship 

Russia shares with Colombia positions at multilateral level on issues such as combating terrorism, human rights, the fight against the world drug problem, trafficking of SALW and organized transnational crime.

 

Regionally, Russia participates in dialogue with CELAC, UNASUR, MERCOSUR and the Andean Community.

 

 21. Colombia Asia relationship 

The Asia Pacific region concentrates 52.1% of the world population and 32.7% of the GDP.  One of the goals of Colombia is to strengthen the competitiveness of the country in the Asia Pacific region, thus creating closer commercial and investment ties. In the productive processes there are complementary elements that through manufacturing and the supply of raw materials, could foster in Colombia the economic and technological progress that brought about the development of the Asia Pacific region.

 

The close relationship of Colombia with the countries of the region is the result of a deep political dialogue, the active and constructive participation of Colombia in the Asia Pacific forums, and economic, cultural and educational exchanges.

 

 22. Colombia Europe relationship 

As a result of long-standing and close political, economic, commercial and social ties, Colombia has always been a natural ally of Europe. As a result of the exceptionally good communications between Colombia and the European countries, ties between the public and private sectors and civil society have grown progressively and significantly stronger.

Europe has become a benchmark for topics such as science, technology, development and social cohesion, as well as a source and destination of goods, services, persons, investment, knowledge and the arts. It is also a partner in the multilateral forums that address topics on the international agenda, and a consultant for the solution of the main problems affecting Colombia, both at the national and regional levels, all of which contribute to enhance Colombia's insertion as a player in the globalization process.

However, the new Colombian agenda toward Europe seeks to intensify and renew its relationship with that part of the world, by means of thematic and geographic diversification, with the purpose of generating socio-economic development, positioning Colombia as a global player and building a true strategic Transatlantic alliance.

 

 23. Import and export regulations 

The following goods may be taken into Colombia by people up to 18 years of age without incurring customs duty: 200 cigarettes and 50 cigars and up to 50g of tobacco; two bottles of alcoholic beverage; a reasonable quantity  of perfume. Colombian law prohibits tourists and business travelers from bringing firearms into Colombia. Illegal importation or possession of firearms may result in incarceration. In many countries around the world, counterfeit and pirated goods are widely available; buying or selling such products is illegal in Colombia, and bringing them back to the United States may result in forfeitures and fines. 

 

Colombian law also forbids the export of pre-Columbian objects and other artifacts protected by cultural patrimony statutes. Under a recent agreement between the United States and Colombia, U.S. customs officials are obligated to seize pre-Columbian objects and certain colonial religious artwork when they are brought into the United States. Travelers departing Colombia must declare to Colombian officials if they are carrying cash or other financial instruments worth 10,000 U.S. dollars or more. You should also contact the Embassy of Colombia in Washington or one of Colombia's consulates in the United States for detailed customs guidance from the Colombian government. 

 

Those regulations that Colombian imports and exports have, are the ones who may affect the imports on industry of bicycles when entering new products used in the sector and that may have prohibitions. 

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