Colombia | Third time's the charm?

Summary

After weeks of waiting, the Government's tax and social reform proposal is now published. The proposal seeks to stabilize the public debt and presents several issues to improve the tax system and social spending, while some issues should be discussed deeply and free of passionate feelings.

Key points

• Key points:
• The reform is born with the purpose of having a credible plan to increase tax revenues in the short and medium term, allowing to pay the country's growing expenses, stabilize the public debt and in a few years begin to reduce it.
• The reform arises from the need to maintain high levels of social spending for the most vulnerable to get through the crisis generated by the pandemic and the social needs prior to the coronavirus.
• Several points were presented that could help improve the Colombian tax system to make it more efficient and progressive.
• Structural reforms are not easy to make. One step at a time is the best way, where it is hopeful that the reform presented will allow progress on a few issues without going backwards on others that previous reforms achieved.
• There should be a deep and prompt discussion, taking advantage of the historical moment left by the pandemic and its scars, and move forward a few steps towards a better tributary and social environment.

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