“Without the 90 billion that are needed in 2021, there is no way to pay state wages”: Uribe launches tax reform proposals

This Wednesday, April 7, the former president Álvaro Uribe again presented tax reform proposals that Iván Duque’s government will present in the coming days before the Congress of the Republic.

One of the ex-president’s assertions was that “without the $ 90 billion that is needed in 2021, there is no way to pay state salaries in the second half of the year.” In turn, he indicated that the Democratic Center recognizes efforts of national government to fight Covid-19 pandemic, which required a debt of more than 150 billion pesos in 2020 and 90 billion in 2021.

Uribe has also launched some proposals which he believes can be used for the text that the finance ministry is preparing for the reform. “To reactivate employment, help the most vulnerable and the middle class, there is absolute consensus on the need to accelerate the reactivation of employment and to support the most needy Colombians through economic transfers”, He said.

He proposed that micro, small and medium enterprises be helped to maintain employment and that the middle and vulnerable class help them with free education. “We must consider social alternatives to finance programs that prevent poverty from leaping forward in two years”, he asserted.

We support the idea of ​​postponing the reduction of certain taxes, such as the reduction in industry and commerce and the reduction in the rental rate, which we approved in the Economic Growth Act to collect certain income in the years to come up.

The former senator also recognized the Duque government’s proposal to save 39 billion in the medium term with the freezing and thinning of the state, on the basis of the powers that would be given to the head of state to carry out a reform. administrative.

Regarding the controversial proposal to extend the payment of rent to more citizens, he assured that he supported the expansion of taxpayers but not of taxpayers. “More tax filers who don’t pay. That only those who earn the most pay. The increase in the number of declarants, who do not pay taxes, stimulates the formalization of the economy “, he clarified.

Uribe and the ruling Democratic Center party absolutely reject the proposal to put VAT on basic products such as coffee, sugar or chocolate, a proposal which has already been overturned by Iván Duque himself. “We celebrate President Duque’s decision not to increase the VAT rate on staple foods and we share the proposal to increase it to luxury foods such as mature cheeses, salmon and sumptuous cuts of meat.”, said the ex-president.

On the other hand, it supported the initiative to apply a tax on the assets of natural persons which exceeds 3 billion pesos, with a marginal rate, progressive, discountable and transitory, as a mechanism of co-financing of social programs. A measure that would also apply to high wages.

We defend the need for strong national finances, to avoid a debt crisis, for a strong financial sector, but we understand the need for the sector to contribute to society as part of the antidote to class hatred.

For the above, Uribe proposes to maintain the rent surcharge to the financial sector with a specific destination for small urban and rural works that encourage the creation of remedial jobs.

The former president also mentioned a mechanism of forced investment in the financial sector increase credit to micro and small enterprises as an instrument of recovery and which can grow in the midst of the economic crisis.

Finally noted that, he will seek “With the government and the consensus of the other banks, to achieve this new social pact which allows us to overcome the pandemic. Poverty-free crisis “.

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