Tuesday, September 27, 2022

Colombians rally against Petro's policies

Tuesday, September 27th 2022 
The so-called “Great National March” was staged in more than 20 cities nationwide

Thousands of Colombians took to the streets Monday to protest against the reforms proposed by President Gustavo Petro, a former guerrilla leader who came into power less than two months ago.

The so-called “Great National March” was staged in more than 20 cities nationwide and also in the United States, Mexico, Panama, and Switzerland. It was the first demonstration against the country's first-ever leftwing leader who has been head of state for less than two months.

In Bogota, people gathered mainly at the National Park and at the Plaza and Monument of the Fallen. Most were carrying Colombian flags and wearing white T-shirts. An encore is scheduled for October 24, organizers told reporters.

Interior Minister Alfonso Prada said Petro's government respected the people's right to protest and that public order would be “maintained peacefully.”

”The opposition called for today (Monday) a national day of protest. This government will respect the right of all citizens to social protest. Expressions of nonconformity will always be welcome and heard,” Prada said on Twitter.

Demonstrators argued that Petro's proposed tax reform will affect the poorest. Finance Minister José Antonio Ocampo seeks to raise 25 trillion pesos annually (about US$ 5.55 billion), to reduce the social debt.

“They have told the country that this reform was for the 4,000 richest Colombians, but it seems to be for 48 million Colombians,” a demonstration leader was quoted as saying. With Petro in office, some of his campaign promises are not quite as he said they would be. The demonstrations are also against the labor and electoral code reforms Petro intends to get through Congress next year. The latter would entail the creation of a body with the power to cancel any political party “in an arbitrary manner under criteria that they themselves will create,” the protest leader argued.

During the protest, Petro was at the border with Venezuela as the barriers were officially lifted. Nicolás Maduro did not attend the event. After that, Petro ordered all college degrees of Venezuelans to be validated within Colombia through the speediest mechanism available while hoping for reciprocity on Maduro's part.

Colombia gov't agrees to ease tax changes to oil, mining

Reuters

Publishing date:Sep 26, 2022 

BOGOTA — Colombia’s government agreed on Monday to modify a tax reform proposal under debate in congress and continue to allow oil and mining companies to deduct royalty payments from their taxes in the wake of a wave of industry criticism.

The government has agreed to back continued royalty deductions in exchange for raising income taxes on extractive industries by 5% and increasing an export tax to 20% for oil and coal sold above certain threshold prices, Finance Minister Jose Antonio Ocampo told journalists.

Colombia’s new leftist President Gustavo Petro has said he wants to raise 25 trillion pesos (some $5.6 billion) in tax revenue in 2023, before eventually adding about $11.5 billion annually for social programs to government coffers.

But clauses which would have prevented energy companies from offsetting taxes with royalty payments came under heavy criticism from producers who said they may make investment inviable.

“The agreement will trade non-deductibility (of royalties) for 5 extra points on income tax. It’s a surcharge, like for the financial industry,” Finance Minister Ocampo said.

The threshold for the export tax on oil will now be $71 per barrel, compared to a previous $48 per barrel.

Coal exports will see the duty levied when prices are above a 20-year average, though Ocampo did not give an exact figure.

Gold exports will not be included in the program as initially planned.

The reform may not raise 25 trillion pesos in additional income next year, Ocampo said, though he did not give more details.

Meanwhile a proposal to raise taxes on gasoline will be scrapped, and more changes to the bill are expected next week.

Thousands marched earlier on Monday to urge changes to the reform, which would also raise taxes on those earning more than $2,259 per month, about 10 times the minimum wage, and eliminate exemptions. (Reporting by Carlos Vargas; Writing by Julia Symmes Cobb; Editing by Kenneth Maxwell)

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