Colombia: Tax Hikes to Hit Poor, Working Class Families

Colombia’s newly-appointed finance minister, Alberto Carrasquilla, just one week after proposing to tax lower class incomes, has proposed to introduce a new sales tax on essential food products.

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The poor and more than 50 percent of working-class Colombians who earn the monthly minimum wage of approximately USD$264 will be hit hardest by the recently announced taxes if they are implemented. Their cost of living consists almost entirely of the products that are currently exempt from sales tax to avoid endangering their quality of life, according to Colombia Reports.

Colombia’s President Ivan Duque vowed tax reform before his election in June. The tax reform plan, however, is not consistent with his promise of lower taxes and higher wages for minimum wage workers.

The measures, therefore, are likely to face stiff resistance. If passed more than half of the country’s population will

... read more at: https://www.telesurtv.net/english/news/Colombia-Tax-Hikes-to-Hit-Poor-Working-Class-Families-20180824-0017.html

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