Colombian President Gustavo Petro has proposed adjustments to a tax reform that went into effect this year, which would decrease taxes for businesses while raising them for the wealthy.
Petro stated that the adjustments will not aim to raise overall tax revenue.
The fiscal reform authorized by Congress aimed to raise tax revenue by 20 trillion pesos ($5.23 billion at the time) in 2023, with more money flowing into government coffers in succeeding years.
However, the goal was hit by a decision by Colombia’s Constitutional Court which eliminated a law preventing businesses in extractive industries from deducting royalties from their taxable income.
Petro says he believes the reform should be reconsidered in order to enhance productivity, and that a revision in the reform might result in lower corporate tax rates while raising taxes on the highest-paid individuals.
In November, Petro said that the Constitutional Court’s ruling would reduce Colombia’s tax income by about 6.5 trillion pesos ($1.7 billion) in 2024.
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