The Colombian Congress approved this Thursday (3) the tax reform proposed by Gustavo Petro. With the prospect of raising more than 20 billion Colombian pesos next year, the highest goal in the country’s history, the legislation still needs to be signed by the president to take effect.
Tax reform is one of the financing pillars for Petro projects, including an agrarian reform based on the purchase of unproductive land by the State and the creation of job vacancies in the public administration itself.
The text provides for the taxation of large fortunes, with rates ranging between 0.15% and 1.15%, in addition to taxes on economic activities of churches – such as the sale of books and other items -, export of products from the extractive sector and food. ultra processed
There will also be more taxes on sugary drinks and single-use plastics, one of the targets of the green agenda that was at the center of the election campaign. The increase in fees will also affect foreigners living in Colombia and digital services such as Netflix and Disney+.
There will also be prison sentences for repeat offenders in tax evasion. “An evader who steals and pays in a first and second year, will be forgiven. In a third, he will pay and go to prison”, said Senator Roy Barreras, referring to the provision of sentences between 4 and 9 years in prison.
According to the government’s estimate, the reform should reduce the country’s fiscal deficit by around 1.2% of GDP. The changes begin to take effect as soon as there is the signature of the president.
On his Twitter account, Petro celebrated the legislative victory and greeted the Minister of Finance, José Antonio Ocampo, and the director of Dian (the Colombian Revenue), Luis Carlos Reyes.
“This reform is a great contribution to the change that the national government intends to move forward with force,” said Ocampo. “Two elements combine here: ensuring that we have a sound fiscal policy and the additional resources to drive social peace.”
For Petro, a solution to the various conflicts that Colombia has, with guerrillas, dissidents, paramilitary groups and criminal factions, is to change the focus from repression to a transformation of the economic model, making the country more productive in agriculture and industry. .
The tax reform bill was announced the day after the inauguration of Colombia’s first left-wing president and was processed in an emergency process at Petro’s request. On that occasion, he stated that taxes would not be “confiscatory, but fair, in a country that must recognize the enormous inequality in which it lives as an aberration.”
In its original version, the legislation was even bolder, with extra taxes for the export of oil and other minerals – proposals that ended up falling during the process.
In the Senate, approval took place on Wednesday (2) in a 15-hour journey, while in the Chamber of Deputies, it took three days. Opposition to the project, represented mainly by the Democratic Center, led by former president Alvaro Uribe, said in a statement that it would appeal to the courts, considering that the reform “attacks the pockets of Colombians”.
With a wealth of experience honed over 4+ years in journalism, I bring a seasoned voice to the world of news. Currently, I work as a freelance writer and editor, always seeking new opportunities to tell compelling stories in the field of world news.
