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Paloma Valencia warns of potential risks of petro tax

Paloma Valencia warns of potential risks of petro tax

President-elect Gustavo Pedro has already appointed his finance minister and Dion’s director. The appointments begin to shape the incoming government’s tax reform plan. Collections are expected to be between 50 and 75 billion pesos, which worries many sectors due to the substantial increase in taxes.

Senator Paloma Valencia, who is emerging as one of the opposition leaders in Colombia, warned of the potential consequences of Petro’s proposed tax hike.

“Welcome to the government of Petro: Guarantees of private property end, and taxes remain at such a high level that it ends the possibility of investing in Colombia. The senator from the Democratic Center posted on his Twitter account.

He didn’t just criticize the next tax reform. The senator was also harsh on two key ministers of the Petro administration: Carolina Corcho, the Minister of Health, and Cecilia Lopez, the Minister of Agriculture. First, he criticized the psychiatrist’s knowledge and intentions, which cast doubt on his proposal to eliminate EPS.

“After reading the interviews with the Minister-designate of Health Karolina Gorcho, I am very concerned. He lacks understanding of the system. He says that middlemen increase the cost. Conversely, intermediation has allowed lower health costs in Colombia,” Criticized the opposition senator.

To his opinion, he added a stance against overhauling the health care system: “The problem of coverage and health care is not solved by ending EPS, but by improving incentives.”

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In turn, he criticized the new Agriculture Minister’s plan for increasing taxes to sell land to the government.

“Minister Cecilia López and the government team that have proposed agrarian reform using higher taxes are not going to improve the countryside to force sales. As a result the rural areas will be reduced to poverty and today everyone stops investing”. Rigging.

Tax on cell phone plans and sugary drinks

Two ideas from two ministers appointed by the president-elect stand out among the plans to boost the government of Gustavo Pedro. Patricia Ariza, the culture minister, suggested a tax on low-cost cell phone plans.

According to the official, It is intended to finance several programs and projects of that portfolio with the additional resources collected with this tax. In addition, he pointed out that cell phone projects in Colombia generate large amounts of capital that should be put to good use.

While there is currently a tax for postpaid plans worth more than 152,000 pesos, it will now be 38,000 + VAT, which is more than 45,000 pesos.

For her part, Carolina Gorcho, the Minister of Health, proposes to renew the debate on the tax on sugary drinks.

“Taxes on sugary drinks have a positive impact on public health, discourage consumption of soft drinks and sugar, and reduce chronic non-communicable diseases, Collection may be optional for the Colombian Health System”, said the incoming minister.

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According to the new official, the next tax reform, a priority for the caucus of the historic agreement, should take into account the resources needed for health in Colombia. All indications are that tax on soft drinks, tea, soft drinks, sports drinks and fruit juices will form the backbone of the sector’s collections.