INTRODUCTION

In this chapter we study the structure of the fiscal system of the Viceroyalty of New Granada toward the end of the colonial period. Then we discuss how the tax system inherited from the Spanish Empire evolved over the period 1821–50.

The conclusion that emerges from the review of the evidence is that the new republic was successful in improving the tax regime it had received from Spain. By 1850, the Republic of New Granada possessed a fiscal system that was much more fair, efficient, and neutral than it had been in 1810.

In 1717 the Captaincy-General of New Granada was raised to the status of viceroyalty. However, six years later New Granada was again declared to be a Captaincy-General. Finally, in 1739 the Viceroyalty of New Granada was reestablished. The viceroyalty included basically the territory of what is now the Republic of Colombia plus Panamá; the Captaincy-General of Venezuela, over which it had very little control; and the Presidency of Quito. In this chapter, when we refer to the Viceroyalty of New Granada we only include the territory of the present republics of Colombia and Panamá.

In the 1810s, when most of the Spanish American colonies achieved their independence, the former territories of the Viceroyalty of New Granada formed the Republic of Colombia, comprising modern Venezuela, Colombia, Panamá, and Ecuador. However, by 1831 it had broken up into three separate republics: Venezuela, Ecuador, and New Granada.