Economy & Business - October 2021

COLOMBIA | Revised tax reform promulgated. Colombia’s President Iván Duque promulgated a revised tax reform on 14 September, after the government’s previous reform bill was withdrawn in May in the face of massive protests. The new law seeks to increase government finances by Col$15.2trn (US$3.97bn) per year. From 2022, corporation tax will be raised to 35% (from the current rate of 31%), with banks and financial entities paying an additional 3% surcharge. The government will also introduce a 10-year austerity plan intended to save Col$1.9trn per year by reducing government spending on goods and services and on travel allowances for government employees. The promulgation was praised by the international credit ratings agency Moody’s Investors Service, which on 6 October raised its outlook for Colombia from ‘negative’ to ‘stable’, noting its “expectation that the fiscal measures approved by the government…will support debt stabilisation.”