Sept. 5 (UPI) -- Colombian President Gustavo Petro's government has introduced a new tax reform bill in Congress to cover the $6.3 billion shortfall in the 2026 budget. It is the third tax reform of his administration and is intended to secure the $139 billion the state says it needs 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.
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.
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