Iván Duque sanctions the new tax reform approved after the protests

The President from Colombia, Ivan Duque, sanctioned this tuesday the Law from Social investment, the new one tax reform quand approved the last week the Senate and the House of Representatives y que replaces which sparked massive demonstrations against him 28th of April.

This law intends to collect 15.2 billion pesos (about 4 billion from Dollars today) for to guarantee the stability of the Public finances and the reactivation from economy, after the ravages caused by the pandemic in the coffers of the State.

“What we are materializing today is the most important reform of the 21st century”, considered Duque during the act of sanction, which was attended by several congressmen and union representatives.

The reformto went approved last September 7th with 76 votes in favor and one against in the Senate and 124 in favor in the House of Representatives, in two votes in which a large part of the opposition was absent.

In addition to change the tax regime, increasing al 35 % the tax from corporate income for companys, la law, According to the government, seeks to arrive has entered 12 and 15 million from Colombians con social programs and it is intended to expand to 50% of the country’s population that receive aid for economic difficulties.

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The president assured that with this law I know maintain social benefits As the solidarity income that was granted in the pandemic to many households or the VAT exception to 2 millions from vulnerable households.

“More than 4 million households will have economic support”, Duque alleged, who explained that also includes subsidys a Business that hire minors from 28 years for encouragesr el youth employment and what does he intend collect more than 1.7% of Gross Domestic Product (GDP), something that “no reform of this century” has done.

“This is a reform that concilia lo social with the fiscal responsibilityl. Only demagogues and populists believe that social reforms are carried out without any fiscal responsibility, “the president remarked.


In the wake of the pandemic, the pobreza monetaria on Pigeonsa went up last yearor 6.8 points with respect to 2019 and stood at the 42,5 %, which means that the number from poor from the country increased by 3.6 million of people passing de 17.4 to 21 million, according to the Administrative Department of National Statistics (DANE).

This proposal arrives after the previous project from tax reform unleash massive protests that began on April 28 and lasted for two months, a period that coincided with the most critical moment of the COVID-19 crisis.

With that draft the government I expected raise 25 billion from weights (about 6,579 million from dollars) with unpopular initiatives such as the expansion of the tax base or the progressive increase in income tax for those who earn less.

The outbreak of a crisis social unprecedented in the recent history of the country provoked the resignation of the driving from reform, the head of the Treasury Alberto Carrasquilla, and forced Duque to withdraw the initiative, which was not debated in Congress, and to order the creation of this new document based on the consensus between political parties, civil organizations, the academy and the private sector.

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