The pension tax “is no more” in the Tax Reform.
Colombia News.
This Tuesday, October 25, the president of Colombia, Gustavo Petro, made an important announcement on the Tax Reform that seeks to raise 25 billion pesos to finance his government programs.
Petro, in a meeting with his bench, agreed to make a modification to the document and definitively not tax pensions, in addition to other changes to the taxation of subsoil assets of the Nation such as oil and coal; which confirms a reversal in his project.
See: Respite for transporters: Petro announced that the price of diesel will be frozen until June 2023
The Colombian president began his speech from the Casa de Nariño, surrounded by several Reform speakers from the government parties, expounding the bases and philosophies of the Tax Reform: “Increase the country’s ability to pay” and “Increase the social justice in Colombia.
Petro in his speech indicated that this Reform “does not affect the majority of Colombians” since the taxes that have been modified in the document “have to do with the higher income layers.”
“We are not going to present a tax on pensions,” the Colombian president was categorical at that point of the Reform.
Together with the government bench and the team of @MinHacienda We have agreed NOT to tax pensions in the tax reform and to modify the taxation of oil and coal. This reform does not affect the majority of Colombians, the collection will be for the highest income. pic.twitter.com/82VIpipm3U
– Gustavo Petro (@petrogustavo) October 25, 2022
It should be remembered that at the time, the current Minister of Finance, José Antonio Ocampo, had reiterated that before today’s determination, they would tax pensions of more than 10 million pesos.
It is worth noting that, according to a report by the Fiscal Observatory of the Javeriana University, only 1% of pensioners in Colombia achieves that figure.
“Of that 1%, about 16,000 people contribute to Colpensiones and another 800 more to private funds,” the Observatory said.
According to the newspaper The Republiconly 1.6 million of the 7 million older adults have a pension in Colombia.
In the past, a large number of pensioners spoke out through a march against the Tax Reform, held on September 26 of the current year: “Without stealing my pension, it is my acquired right,” read some dealer posters.
Regarding the course of the Tax Reform in the Congress of the Republic, it was already approved in a first debate, and the second is scheduled for the month of November of this year.
Cover photo: @presidency
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