Why Some Rules That Enshrine The Growth Of Consumer Price Index Last Year, As Adjustment Factor Values ​​are Modified And Other Provisions

Original Language Title: Por la cual se modifican algunas normas que consagran el crecimiento del índice de precios al consumidor del año anterior, como factor de reajuste de valores, y se dictan otras disposiciones

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LAW 242
1995 (December 28)
Official Gazette No. 42169 of December 29, 1995
why some rules that enshrine the growth of consumer price index last year as modified adjustment factor values, and other provisions. Summary

Term Notes
CONGRESS OF COLOMBIA DECREES
:
ARTICLE 1o. OBJECT. This Act amends the legal rules that take into account the past performance of the Index of Consumer Prices as adjustment factor fines, property values, ranges, amounts and fees, and instead establish criteria that refer to the inflation target, in order to adjust the legislation to serve as a tool for the de-indexation of the economy, according to the Social Pact on Productivity, Prices and Wages. It also determines how should take into account the inflation target in the issuance of rules by the National Government and the District, Municipal and Departmental Administration. Editor's Notes

Effective Jurisprudence


PARÁGRAFO. Readjustments in tuition and educational pensions continue to be governed by the provisions of Law 115 of 1994 (General Education Act).
Article 2.
. DEFINITIONS.
IPC: Consumer Price Index calculated by the National Administrative Department of Statistics (DANE) for the national total, total products and total income, or for the purposes specified in this law, the following definitions are adopted the index that replaces it.
Inflation: CPI Cumulative change during a calendar year.
Inflation Target: The percentage of expected inflation for the year as determined to take at the end of each year the Board of the Bank of the Republic or the entity that replaces it.
Values: Monetary figures in Colombian pesos.

ARTICLE 3. PROVISIONS FOR THE ISSUANCE OF STANDARDS TO TAKE INTO ACCOUNT THE INFLATION. The national government and the departmental, district and municipal administrations, when issuing rules that require updating values ​​subject to determination by law, take into account the inflation target as an estimate of the price performance of the year in which they apply such securities. This does not exclude the possibility to take into account various factors in addition to the real value in determining the adjustment, these factors that must be expressed in the standard.
For calculations also involve adjustments to previous years, when you update the value, the corresponding inflation recorded by the Dane for adjustment in each of those years will be used, and the inflation target will be used for reset this year. If the calculation should be done every year ever used the corresponding inflation target, which applies to the value determined in the previous year uncorrected differences between the target adopted that year and recorded inflation.
PARÁGRAFO. Wages, pensions and countertops in general continue to be governed by the constitutional and legal provisions.

ARTICLE 4. MODIFICATION OF RULES USING AS LAST YEAR INFLATION FACTOR FOR THE ANNUAL ADJUSTMENT OF FINES. From the effective date of the present Law, modifícanse all those provisions that enshrine the change in the index of consumer prices last year as a discount factor value of fines or penalties, in the sense that is adjusted annually by a percentage equal to set inflation target for the year in which it is necessary to readjust.

The 5th ITEM. MODIFICATION OF RULES USING AS LAST YEAR INFLATION FACTOR FOR ADJUSTING AMOUNTS OR RANGES. From the effective date of this Act modifícanse all those that enshrine the change in the index of consumer prices last year as a factor of updating amounts or ranges of values ​​that define the differential application of a provision in the sense that they adjusted annually by a percentage equal to the inflation target set for the year in which it is necessary to readjust.

ARTICLE 6o. Amendment of article 8. Of Law 44 of 18 December 1990. The article 8. Law 44 of 1990 shall be as follows:
"Annual adjustment of the base value of the estate tax valuations are adjusted annually from January 1 of each year, a certain percentage by the national government.. previous concept of the National Council for Economic and Social Policy (CONPES). the percentage increase may not exceed the inflation target for the year in which the increase is defined.

In the case of holdings unformed the percentage increase in the preceding paragraph refers to, it may be up to 130% of that goal. PARAGRAPH 1.
. This adjustment does not apply to those properties whose assessed valuation has been formed or readjusted during that year. PARAGRAPH 2.
. If differences between the inflation target and inflation recorded by the Dane, who accumulate more than five percentage points in one year, are presented by the National Government may, after an extraordinary concept Conpes further increase. "
|| | ARTICLE 7 Amendment of Article 10 of Law 56 of 1985. Article 10 of Law 56 of 1985 shall be as follows:
Readjustment of rental fees Every twelve (12) month contract performance under.. the same price, the landlord may increase the fee at a rate that does not exceed the inflation target as long as the new canon does not exceed the provisions of article 9., of this Law.
PARÁGRAFO. If show differences between the inflation target and inflation recorded by the Dane, who accumulate more than three percentage points in one year, the Government may authorize a further increase in the rents which would take place in the next renewal the subsequent contract to such approval.

Article 8. This law repeals all those provisions that are contrary.
The President of the Senate of the Republic,
JULIUS CAESAR Tulena WAR.
The Secretary General of the Senate of the Republic,
PUMAREJO PEDRO VEGA.
The President of the Chamber of Representatives,
Rodrigo Rivera Salazar.
The Secretary General of the Chamber of Representatives, DIEGO VIVAS
TAFUR.
REPUBLIC OF COLOMBIA - NATIONAL GOVERNMENT
communication and publication.
Given in Bogota, DC, on December twenty-eight days
1995

Ernesto Samper Pizano Minister of Economic Development (E.), FABIO GIRALDO ISAZA
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