The Minister of Finance, José Antonio Ocampo, said that there is no way to replace the resources provided by the 4 per 1,000 taxwhich is why this tribute, until another alternative is found, will be maintained.
The head of the economic portfolio of the government of Gustavo Petro defended the content of the tax reform that he presented to Congress on August 8 and said that it is the most redistributive in recent times.
(Minhacienda suggests to Congress to adjust the norm on the Budget).
In the framework of the Banking Convention, Ocampo said that it is necessary to make greater financial inclusion and for them it is necessary to deepen the credit portfolio more, and emphasized that new models are needed, such as cooperative credit, so that financing reaches everyone. the productive lines, especially to the micro companies, which have been out of credit.
He said that he agrees with the warnings of Leonardo Villar, manager of Banco de la República and Jorge Castaño, Financial Superintendent, in the sense that you cannot lower your guard to prevent the system’s portfolio from deteriorating, now that the Colombian and global economies are beginning to enter a stage of deceleration. Ocampo mentioned the challenges that the government has to balance finances, as well as to reduce the enormous fiscal gap and high indebtedness.
(‘Let the banks finance production to create wealth’: Petro).
The head of the Treasury portfolio defended the need to continue consolidating and carrying out the tax reform project that was presented for discussion before Congress. Although he insisted that if there are alternatives that allow making adjustments to the projectalso emphasized the need for the $25 billion needed to meet the needs of the country.
In addition, he warned that the country’s social conditions are weak and are more worrying in a context of global weakness and high inflation. He highlighted that the second semester of 2021 and the first of 2022 were very good in terms of economic growth, but that the dynamics of this year is not as high as it was estimated a few months ago. In addition, he even said that the social issue is at the top of the government’s agenda.”Unemployment rates and labor informality remain high, especially for women and youth,” said the minister.
(The congressmen who will be rapporteurs of the tax reform have been defined).
He also emphasized the growth of poverty, which has also decreased in the last year, “but not enough”, as he said that there are still 2.1 million people in that condition in the country more than in 2019. These factors increased inequality in Colombia, placing the country above other economies in the region in this area.
Ocampo pointed out the risks that an excessive cost of living brings to the country, especially for poor households that must pay much higher prices for food, which could be mitigated with subsidies and an aggressive food self-sufficiency policy. For Ocampo, higher inflation and the adverse international context will have negative effects on the Colombian economy and this will lead to a significant slowdown in 2023.
José Antonio Ocampo assured that the tax reform project seeks, in part, to reduce the historical social debt with the most vulnerable population in the country and help reduce the imbalance in the State accounts.
BRIEFCASE
