Colombian Government Lowers Revenue Target For Proposed Tax Reform

• Colombia’s government has lowered the amount of money it hopes to raise from proposed tax reform in an effort to win enough support to push the legislation through Congress, Vice Finance Minister Juan Alberto Londono said on Wednesday.
• The government is now looking to raise between 18 trillion and 20 trillion pesos ($4.84 billion to $5.38 billion), Londono said. He added that it was open to negotiating other parts of the proposal, which includes measures to reduce sales tax exemptions and change income taxes.
• The original plan presented to lawmakers last week sought to raise an additional 23.4 trillion pesos ($6.29 billion) - equivalent to 2% of Colombia's gross domestic product (GDP) - by eliminating many deductions and increasing duties on individuals and business.
• The government is looking for consensus and for ways to cover the gap so that the country can pay its debt while protecting the vulnerable population from a reduction in expenditure on social programs.
• The proposed reform has met stiff resistance in Congress, including from a coalition of parties that supports President Ivan Duque's government. Opponents argue the changes would unnecessarily burden taxpayers already stretched by the economic crisis caused by the coronavirus pandemic.

(Source: Reuters)