Colombia’s first leftist government in modern history has targeted the country’s wealthiest residents and its commodities exports in a tax proposal that represents a significant shift for the traditionally conservative nation.
The proposed tax overhaul “should not be viewed as a punishment or a sacrifice”, Gustavo Petro, the country’s new president, said during his inauguration speech on Sunday, a day before sending the bill to Congress. “It is simply a solidarity payment that someone fortunate makes to a society that has enabled them to generate wealth.”
Some analysts described the proposed reforms as more pragmatic and less radical than feared when Petro was elected. However, they worry the reform may not be enough to tackle the fiscal deficit while funding the ambitious social programmes that he promised on the campaign trial.