Colombia: Petro unveils tax reform the day after opening

Colombian President Gustavo Petro presented his draft tax reform on Monday, just a day after his inauguration in Bogotá.

The new government’s initiative has a clear desire for redistribution and aims to raise around 50 billion pesos (about $11,400 million) over the next four years.

Center for reforms promoted Gustavo Petro there will be personal income taxes, paying more taxes by 1 percent of Colombians richer and overview of exceptions.

It is also planned to increase the income tax for people with an income of more than 10 million pesos a year and reduce the amount of benefits on savings accounts (SCA) to a maximum of 700 units of tax value.

With regard to the wealth tax, capitals over 3 billion pesos will begin to be taxed, while capitals over 5 billion will pay 2 percent. Incidental income tax will increase from 10 percent to 20 percent, and in the case of free zones, a minimum amount of exports will be required to maintain the tax credit that exempts them from paying the 35 percent tax.

The reform in Colombia also includes so-called healthy taxes on sugary drinks, based on the share of sugar and ultra-processed foods, and sets rates on single-use plastic. It also removes tax incentives for large companies that are deemed unnecessary.

He also plans to end the day without the VAT promoted by the previous government because, according to the new government, “they mainly benefit high-income sectors with consumption and savings power, so their elimination contributes to a fairer tax system.”

Petro offers ‘criminal benefits’ to armed groups

New Colombian President Gustavo Petro this Sunday offered criminal “benefits” to armed groups in exchange for them signing peace following a 2016 deal with then-FARC guerrillas.

“We call on all armed people to lay down their arms in the nebula of the past. Accept legal benefits in exchange for peace, in exchange for the ultimate non-repetition of violence,” the Colombian leftist leader said in a speech at an investment event.

Gustavo Petro expressed interest in making “complete peace” with the groups left in service after the dissolution of the Revolutionary Armed Forces of Colombia (FARC) and their transformation into a political party. For this reason, he indicated that he would give priority to dialogue with these groups.

The ELN guerrillas, the last to be recognized after the disarmament of the FARC in 2017, have expressed their intention to engage in dialogue with the new government. Likewise, dissidents who did not join the peace process that ended what was once the most powerful guerrilla group on the continent were willing to agree to a bilateral ceasefire.

(According to Europa Press and AFP)