Colombia's New Tax Reform Plan Unveiled by Finance Minister Miguel Gómez

Designated Finance Minister Miguel Gómez Martínez, under President Abelardo de la Espriella, has presented a comprehensive tax reform intended to overhaul Colombia's fiscal system. The proposal targets three main goals: expanding the tax base to bring more formal taxpayers into the system, simplifying the fragmented tax code into a few major levies such as income tax and value‑added tax, and securing fiscal stability to fund public spending. Gómez emphasizes that “no se trata de soluciones temporales, sino de redefinir la estructura fiscal del país.”

The reform arrives amid a challenging macro‑economic backdrop: a projected fiscal deficit of about 5 % of GDP, rising public debt and high spending levels. The incoming administration plans immediate austerity measures, including a decree to freeze unexecuted spending, audits of temporary contracts and subsidies, and a push to decentralize functions to regional governments. Political support is uncertain; while the right‑wing coalition backs the agenda, the minister must negotiate with the Liberal, Conservative and La U parties in Congress. Opposition parties warn of social impacts, and the success of the reform will depend on gaining a legislative majority to pass the plan.