BOGOTÁ (AP) — Colombian President Gustavo Petro proposed raising taxes on the richest in Colombia as part of an ambitious tax reform project, his first major legislative proposal with which he hopes to get enough resources to meet his promises, including the fight against poverty.
This is the first reform to be announced after Petro’s swearing-in. It is considered a key piece to finance its ambitious social programs that include reducing poverty and inequality.
The government expects to collect revenue of 25 billion pesos by 2023, which is equivalent to 5.76 billion dollars.
It is a more ambitious reform than the one carried out in 2021 by the government of former President Iván Duque (2018-2022), who had to completely change his initial proposal after massive demonstrations against higher tax collection that, according to the dissatisfied, affected the pockets of the middle class and the most vulnerable. Duque managed to get a collection of 15.2 billion pesos approved.
The day before, Petro said in his inauguration speech that it is an act of solidarity, in which those who have more resources would pay more taxes while the State directs them towards the most vulnerable.
The reform will increase the collection of income from natural persons. “Our goal is for people with more than 10 million monthly incomes (2,300 dollars) to pay, which are the 2% of the population with the highest income,” Treasury Minister José Antonio Ocampo told the press.
In addition, it proposes to revive the estate or wealth tax for those who have assets greater than 3,000 million pesos, which is equivalent to about 461,000 dollars.
Ocampo proposed eliminating some preferential tax benefits for gasoline prices in border areas, because “really what they are generating is contraband from Colombia to Venezuela.”