Colombia: Reactionary tax reform and the labor movement

Published Apr 14, 2021

Tridge summary

The Colombian government, led by Iván Duque, has proposed a tax reform aimed at generating over 27 billion Colombian pesos to fund social expenses related to the pandemic. The reform, which includes introducing or increasing VAT on basic products and extending income tax to more workers and retirees, is expected to affect the working population significantly. However, it is perceived that the capitalist class will contribute only 10% of the revenue, while the popular sectors will bear 90%. The proposal has faced opposition due to concerns about the burden on the people and claims of missing resources for state payments. Protests and mobilizations against the reform are planned, amidst allegations of extortion and human rights abuses, including over 250 social activists killed in 2020. The labor, student, and indigenous movement is called upon to paralyze the country to stop the tax reform.

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Original content

The government of Iván Duque presented a tax reform project, the application of which would have a tremendous impact on the pockets of the masses. On the one hand, hundreds of thousands of workers and retirees would be affected by income tax. On the other, VAT is introduced or increased on basic products such as coffee, sugar and chocolate. According to the CUT, one of the trade union centrals, 90% of the resources that the government aspires to collect with its initiative (just over 27 billion Colombian pesos) will be paid for by the popular sectors, while only 10% remaining by the capitalist class. The measure is presented as the only way to finance social expenses due to the pandemic. In keeping with this, extortion has been mounted against the Colombian people. The Minister of Finance, Alberto Carrasquilla, warned that “we have cash that will last us approximately six or seven weeks” (As.com, 7/4), while former President Álvaro Uribe, who is part of the same political force as ...

Source: Prensaobrera