Colombia’s finance minister announced the government will seek more tax revenue from lower class incomes, while cutting corporate tax rates.
The announcement by Finance Minister Alberto Carrasquilla comes little more than a week after President Ivan Duque took office.
The tax hikes for normal Colombians are “inevitable,” according to Carrasquilla who was caught funnelling his private capital to offshore tax havens by the so-called Panama Papers in 2015.
Carrasquilla told newspaper El Tiempo last week that he plans to lower the threshold for income tax for workers earning more than $623 (COP1.9 million) per month. Until now, only people earning more than $1,200 (COP3.7 million) must pay income tax.
The proposed tax hike would only affect the country’s lower class as a person would have to earn more than $1,300 (COP4 million) to be considered middle class.
The tax hike is the second since