Colombia's Petro suggests tax reform to support 2026 budget

05 Sep 2025 21:00

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Colombia's Petro suggests tax reform to support 2026 budget

Photo by caruizp/Pixabay

Colombian President Gustavo Petro's government has presented a new tax reform bill in Congress to address a $6.3 billion shortfall in the 2026 budget. This marks the third tax reform of his administration, aiming to secure the $139 billion the state estimates it will need next year.

In 2022, Petro introduced his first tax reform, which was approved and raised $2.7 billion. In 2024, however, Congress rejected a similar proposal seeking $3 billion, leaving the 2025 budget unfunded and forcing the executive branch to issue it by decree, News.Az reports citing foreign media.

The initiative, presented Sept. 1 by Finance Minister Germán Ávila, faces strong opposition in Congress and has become the center of a political battle over fiscal sustainability, public security and the finances of millions of Colombians.

The bill calls for higher taxes on high-income individuals and wealth, along with new levies on fuel, liquor and gambling. It would also tax foreign companies that provide digital services such as Netflix, Amazon Prime and HBO.

News.Az