Latin America

Watered down tax reform brings only temporary relief to Colombia

After mass protests four months ago, new reform shifts the tax burden onto other groups, but opposition remains unsettled

tax reform colombia
Colombians disgruntled with Duque’s original tax reform bill staged months of protests and strikes. Photo: Sebastian Delgado/Shutterstock

Four months after President Iván Duque’s tax reform proposal led to massive street violence and the resignation of Colombia’s Economy Minister, a less burdensome and controversial version of the bill received its final approval in Congress this week.

The new law is expected to bring in around COP 15 trillion (USD 4 billion) per year, less than two-thirds of the original plan. The source of those funds will also be quite different from that of the first proposal, as the revamped bill focuses on raising taxes from corporations instead of consumers, households and individuals.

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