According to the official, the tax reform would not affect basic goods, and the main adjustments to the Value Added Tax (VAT) would apply to hybrid vehicles, alcoholic beverages, lodging for non-residents, and online gambling.

Taxes are also expected to be levied on fossil fuels, gasoline, and biodiesel, as well as on alcohol consumption, with progressive increases.

Furthermore, it provides for changes to the personal income tax, which include the elimination of deductions and discounts, including the dividend tax.

According to Avila, if Congress shelves the proposal, which seeks to raise approximately $6.5 billion, new alternatives will be studied to meet the goal of ensuring economic stability in the country.

President Gustavo Petro, stating that the tax reform is aimed at the country’s wealthiest, proposes “Reducing corporate taxes, increasing inheritance taxes, taxes on business mergers, hydrocarbons, only foods that are harmful to health, fossil fuel vehicles, and reducing taxes on clean energy.”

He also asked not to distort the meaning of the initiative and demanded: “No more lies about the tax reform, you very rich people. You own the press and social media, but should pay taxes. The banker’s secretary pays more taxes than the banker himself. You leave the children of the poor without education, without healthcare, and without food at school.”

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