Colombian Congress approves tax hike on wealthiest

Colombia’s Congress on Thursday approved a reform aimed at hiking taxes on the country’s wealthiest as well as its oil sector, part of new leftist President Gustavo Petro’s signature campaign promises.

The bill, negotiated between the Senate and Chamber of Representatives, was approved by the two houses on Wednesday and Thursday, Interior Minister Alfons Prada said.

Petro campaigned on a platform of raising taxes on the rich, stopping oil exploration and distributing fertile land among landless farmers.

“For the first time in several decades, we are talking about taxing the wealthiest sectors of the population to finance spending and investments in favor of the poorest people in the country,” Petro said afterwards, during a military ceremony.

Congress has shown that it is “at the service of those who need it most,” said the South American country’s first elected leftist president, who was voted into office in June.

Prada wrote on Twitter that “the government of change offers the country a progressive and equitable reform that will lead us on the path to total peace and equity.”

The law is now “ready to be signed” by Petro, he added.

The bill will create 20 trillion pesos ($4 billion) in additional revenue in 2023 which will be used towards social programs, and up to 23 trillion pesos in 2026.

Under the plan, those whose monthly income is more than ten times the minimum wage will be taxed more heavily.

It will not affect 98 percent of the population, the Finance Ministry said.

It additionally imposes new taxes on the oil, mining and energy sectors.