BOGOTA, Jan 30 (Reuters) - Colombia's government is set to present a new tax reform to Congress in order to generate the necessary financing for its budget, aiming to raise at least 12 trillion pesos ($2.86 billion), Finance Minister Diego Guevara announced Thursday. This move comes after a similar proposal was rejected by lawmakers late last year.
During an interview with local radio station Caracol, Guevara mentioned that the government might even propose a higher amount in the reform.
Previously, Congress aimed to raise approximately 9.8 trillion pesos to complete the funding for the 2025 budget. However, with those funds now unavailable, the government had to cut spending to about 511 trillion pesos.
Guevara acknowledged the significant tax burden this year, stating, "We need new resources." He also disclosed that President Gustavo Petro has requested the submission of a new proposal.
According to Guevara, Petro's administration will reintroduce some measures that were rejected by lawmakers last year, such as tax breaks for small and medium-sized enterprises, alongside levies on sectors like mining and energy.
"We're still in the initial stages of planning the new proposal," Guevara noted. "Our initial target is 12 trillion pesos, but we might consider raising this amount slightly to ensure stability both in the current year and in the long run."
Petro's government lacks sufficient support in Congress.
The autonomous fiscal rule committee (CARF) projects that despite reducing spending by 12 trillion pesos, the government's expenditure for this year still exceeds the budget by 40 trillion pesos.
(Note: $1 = 4,188.59 Colombian pesos)