The Petro Government Opens With A Tax Reform To Curb Inequality In Colombia

The Petro Government Opens With a Tax Reform To Curb Inequality In Colombia

This Monday, the first day of Gustavo Petro as president of Colombia, the new Minister of Finance, José Antonio Ocampo, has presented a tax reform bill. The objective is to promote equality through collection, limiting tax benefits to the wealthiest 2% of the country and large companies in order to reduce the social gap.

Felipe VI does not stand up before the arrival of Bolívar's sword at the inauguration of Gustavo Petro

Felipe VI does not stand up before the arrival of Bolívar’s sword at the inauguration of Gustavo Petro


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The Tax Reform for Equality and Social Justice supports four pillars. In the first place, a modification of taxes on natural persons is proposed, limiting the tax benefits for those who earn more than 10 million pesos per month (2% of the Colombian population). In addition, a 0.5% tax is proposed on assets of more than 3 billion pesos (about 700,000 euros) and 1% for those of more than 5 billion (more than 1.1 million euros).

As regards companies, the project presented by Ocampo, the most cited Colombian economist in the world academy and who had already served as head of the Treasury during the government of Ernesto Samper, proposes the limitation of benefits and tax exemptions without raising taxes. Yes, the extraordinary profits derived from the high price of raw materials such as oil or coal will be taxed with a rate applied to their export.

The new tax regulations propose, in third place, the creation of healthy taxes and the energy transition focused on sugary drinks, ultra-processed foods and an extension of the current carbon tax.

Fourth, Ocampo proposes a fight against tax evasion by strengthening the modernization of the National Tax and Customs Directorate Special Administrative Unit (DIAN).

The Finance Minister affirms that the project will reduce inequities, advancing towards equity and justice.

“This reform that we are proposing generates 25 billion pesos a year (about 5,650 million euros), but we hope that with the fight against tax avoidance and evasion that amount will rise to 50 billion pesos a year (about 11,315 million euros). ), which is what was discussed throughout the presidential campaign,” says Ocampo.



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