Colombia tax reform dispute as outgoing government pushes July 20 filing, incoming team opposes

The outgoing administration of President Gustavo Petro plans to file a new tax reform in Congress on 20 July, just weeks before its term ends on 7 August. Finance Minister Germán Ávila argues the measure is needed to fund programs and balance the budget, presenting it as a final act of the incumbent government.

Vice‑president‑elect José Manuel Restrepo, coordinating the transition for president‑elect Abelardo De la Espriella, has formally asked the outgoing government not to submit the bill, saying that designing fiscal policy is the prerogative of the incoming administration. The request was made during the first hand‑over meeting at the Casa de Nariño and underscores a broader dispute over the timing and control of fiscal adjustments.

The hand‑over talks run through 31 July, after which the new government will take office on 7 August. Restrepo emphasized transparency, proposing public, recorded meetings involving about 1,300 participants from 22 sectors. No tax changes take effect immediately; any reform would still need approval from a divided Congress and could affect VAT, income‑tax brackets and wealth taxes, potentially impacting foreign residents who are taxed on worldwide income.

The outcome of the July 20 filing will set the tone for the transition, while the incoming team prepares its own fiscal plan, having named Miguel Gómez as the new finance minister.