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Iván Duque proposes raising taxes to cover Colombia's fiscal hole created by pandemic


RIO DE JANEIRO, BRAZIL – The government of Iván Duque presented on Thursday a tax reform bill that seeks to cover the fiscal hole caused by the pandemic in the Colombian public accounts. It would be the third tax reform of his mandate and the first in a Latin American country since the coronavirus caused a turnaround in the political and economic agendas of the region. The bill sent to Congress proposes a resumption of “sustainable debt paths.”
“The fiscal impact caused by the pandemic crisis has implied a vision that is not limited to the year 2020, but also affects us in 2021,” Finance Minister Alberto Carrasquilla said at a press conference in which he presented the package. The Finance Ministry estimates that the fiscal deficit in 2020 stood at 7.8 percent of GDP and could rise to 8.6 percent this year. ....

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Why is the economic impact of the pandemic so serious in Latin America?


the crisis that arose from the pandemic accentuated social and market problems.
It should be noted that not all countries are in the same situation. Some nations, such as
Peru, Argentina, Ecuador, Mexico, Colombia, or Venezuela have the worst rates. On the other hand, others, such as Brazil, Paraguay, or Uruguay, had blown to their economies, although they were not too serious.
Recently, ECLAC revealed that
Latin America was the developing region most affected by the pandemic in the world. According to the agency dependent on the UN, the region contracted 7.7%, lost almost 3 million companies, and registered about 28% of the deaths from Covid-19 in 2020. Already last year, ....

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