ANLA Specifies VAT Exemption for Natural Gas Powered Buses

| Colombia: Bogotá | Source: Gobierno de Colombia, ANLA
Bogota CNG Bus

Bogota CNG bus

Colombia’s Autoridad Nacional de Licencias Ambientales — ANLA (National Authority of Environmental Licences) recently approved environmental certifications for mass transit companies in the country to access tax benefits, incorporating energy sources that are more environmentally friendly. ANLA has confirmed with NGV Global News the exemption is inclusive of buses fuelled by natural gas.

The intention of the government is to reduce and prevent air pollution while stimulating the use of clean technologies. ANLA says these actions are in line with the National Government’s goal to reduce greenhouse gas emissions by 20 percent. This year massive transportation systems in Bogotá, Medellín and Pereira have benefited from not having to pay Value Added Tax (VAT).

The role of the ANLA as a regulatory entity is key for the strengthening of the activities of evaluation and monitoring of projects that generate polluting emissions and also in the promotion of the use of unconventional sources of energy (solar, wind, geothermal) and other technologies. clean, with which you can prevent and / or reduce the generation of negative impacts at the national level.


Carlos Alonso Rodríguez Pardo, deputy director of Instruments, Permits and Environmental Procedures of the ANLA, informed NGV Global the exemptions are stipulated in Article 2 of Resolution 1988 of 2017 (2) which authorises ANLA to develop the Program for Rational and Efficient Use of Energy. Where the discharge of that responsibility relates to cleaner transportation, the article specifically includes “Conversion to natural gas for vehicles: CNG in public passenger transport”.

Colombia MetroCali imageQuoting the relevant section of policy, ANLA says that “Consequently, investments for the purchase of compressed natural gas-using buses are able to access the tax incentives of VAT exclusion and discount on rent, any time, which are considered as part of the range of vehicles dedicated to vehicular natural gas”.

Exemption Calculation

“How much will the public transport operator save for each bus that qualifies for the tax benefit?” ANLA says the percentage of the tax to exclude corresponds to 19% of the value of the acquired good. In the case of the income tax discount, legal entities that make these investments directly will have the right to deduct from their income tax 25% of the investments made in the respective taxable fiscal year.

NGV Global acknowledges the assistance of ANLA with the preparation of this article.

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