The reform proposes gradually increasing tax collection up to an additional 50 billion pesos per year (11,528 million dollars), the Minister of Finance, José Antonio Ocampo, during the establishment of the initiative.
The tax reform seeks to dismantle preferential tax treatment that benefits the wealthiest, reduce poverty and inequality in Colombia and eradicate hunger, the document stated.
Last week Ocampo said in an interview with Reuters that “it is impossible” to carry out the government plan of the leftist Petro without the approval of the fiscal reform.
Main lines of tax reform
Among the main proposals of the government of Gustavo Petro are greater taxation of people who earn more than 10 million pesos (2,305 dollars) per month, a wealth tax permanently and a tax on profits from the sale of shares of listed companies.
In addition, the reform will eliminate some business exemptionshigher taxes on oil, coal and gold exports; will impose taxes on sugary drinks and ultra-processed foods, on single-use plastics and there will be a carbon tax.
The President of the Senate and member of the ruling party of Colombia, Roy Barrerasasked the Minister of Finance to present an urgent message to expedite the processing of the initiative, despite the fact that Gustavo Petro had promised not to do so.
Petro has promised not to sign new oil exploration contracts to move towards an energy transition, a proposal that has sparked uncertainty in the markets.
Source: Ambito
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