“The Colombian state has a historic social debt. Poverty and inequality are high and persistent. Hunger has become an issue that stands out amid the social tragedy that millions of Colombians are experiencing, he adds.
The document points out that “there is no social justice when this happens, and less so when there are also privileges, unjustified tax burdens and mechanisms that facilitate tax evasion and evasion.”
The text of the law shows that this tax reform project should make fundamental progress in two dimensions.
First, by reducing unjustified tax exemptions for higher-income individuals and some businesses, and by closing avenues for tax evasion and avoidance.
Second, in providing sufficient resources to finance the strengthening of the social protection system. This is achieved through adjustments to the tax system that allow for advances in progressiveness, fairness, simplicity and efficiency.
“This reform that we are proposing generates 25 billion pesos a year (about $5,795 million), but we hope that by fighting tax avoidance and evasion, this amount will increase to 50 billion pesos a year (about $11,1,590 million). will increase ) which has been talked about throughout the presidential campaign,” Ocampo asserted.
If the initiative is approved, the 25 billion pesos would equate to 1.72% of gross domestic product (GDP) in 2023.
The reform project presented to Congress, the majority of which President Gustavo Petro approves, focuses on significantly reducing the exceptions that exist in the personal income tax regime, which essentially benefit the taxpayers with the highest incomes.
It also provides for a more equitable treatment of the different types of liquid income in order to simplify the system and the introduction of a tax on the wealth of the most privileged groups.
These measures, together with the elimination of exceptions and rebates that lead to unjustified asymmetries in productive sectors, allow the creation of more revenue streams for social spending through provisions that encourage a more efficient allocation of economic resources.
In addition, they are aligned with the prioritization that will be made according to President Petro’s government plan for some strategic sectors such as: B. education, health, environmental protection, energy transition, productive development and national economy.
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