New Tax Reform In Colombia Raises Criticism

Colombian opposition groups lashed out Tuesday against President Gustavo Petro's ambitious plan to overhaul the country's tax system.

The tax reform proposal filed by Finance Minister Jose Antonio Ocampo has raised concerns by opposition groups that it will affect low- and middle-income households.

The government presented Congress with a tax reform bill that seeks to increase taxes for the wealthiest Colombians, raise export tariffs on oil and gas, boost taxes on sugary drinks and plastics while fighting tax evasion. It came less than 24 hours after Petro was sworn in as the first leftist president in the nation's history.

The main opposition leader in Congress, Miguel Uribe, slammed the proposal.

"The tax reform scares away investment and destroys jobs. It hits the middle class and low-income households," the right-wing Centro Democratico politician said Tuesday.

Members of the opposition have said that raising taxes on the oil and mining industry would hurt the economy.

But Petro defended the proposal to finance his ambitious social agenda.

"The tax reform we have presented complies with what we said in our campaign. It taxes the wealthiest and spends on education for all and on ending hunger among poor children," he wrote on Twitter.

The proposal is expected to raise up to $11 billion annually to tackle poverty and unemployment as promised by the new president during his campaign.

It has not been easy for governments in Colombia to pass reforms to ensure fiscal stability.

Another proposal by former President Ivan Duque that sought to raise income and some sales taxes led to deadly protests in 2021, forcing Duque to withdraw the measure.

There are still several congressional debates to be held before passing the bill. -