Colombia is preparing for its third tax reform under the government of President Gustavo Petro.
The announcement was made by Finance Minister Germán Ávila during the presentation of the Medium-Term Fiscal Framework (MFMP) 2025-2035 on June 13.
The new fiscal project is expected to be submitted to Congress at the end of July.
The first tax reform was approved in 2022, but the second, known as the financing law, was rejected in 2024.
The new initiative aims to collect between 19.6 and 25.4 trillion pesos.
Potential changes include modifications to the carbon tax, taxes on gambling, digital platforms, and churches, as well as adjustments to taxes on pesticides, noise, and vapes.
The government is also considering changes to the consumption tax and improvements to the progressivity and equity of income tax declarations for individuals.
Minister Ávila stated that the reform aims to address tax evasion and aggressive tax planning.
The project has faced criticism, with concerns raised about the economic assumptions and the potential for unrealistic revenue projections.
Some critics question the need for increased taxes given signs of economic recovery and the absence of spending cuts.