In most cases, a governing suggesting a simplification inward taxes is an unheard-of anomaly. However, Colombia’s new president, Gustavo Petro Urrego, is doing just that, submitting a proposition to concentrate certain gaming taxes.

Petro, a former economic expert who was sworn inward Colombia’s prexy a pair of days ago, has a refreshing draw close to collecting to a greater extent money for tell coffers. He wants to bring up the task on the “ultra-wealthy,” spell knifelike task obligations on “occasional” play winnings.

The country’s U.S. Congress now has the task straighten out bill, highly-developed inward connective with inward Minister of Finance José Antonio Ocampo. It’s ace of the number one initiatives it received under Petro’s leadership. As such, any conclusion could be a statement of backing – or rejection – of his authority.

Reforming the Country

Petro, who ran for chairman inwards 2018 but lost, now ripe to the Presidency on a program of economical reform. He touted his power to transform the country’s impoverished universe as he promised to append around $50 billion to the governing over the next iv years. The money, he stated, will finance societal programs against impoverishment and inequality inwards Colombia.

The exchange repoint of his tax reform focuses on the upper echelon of Colombia’s society. It proposes an increase in the income task that they pay. In this case, referring to this sphere as the “really rich” sector, a tax of 0.5% would apply to anyone whose clear worth is higher up COP3 one thousand million (US$695,000). Above COP5 one thousand million (US$1.15 million), the rate is 1%.

In addition, Petro promises to armed combat tax evasion, which costs the country around $11.5 gazillion a year. To make so, his taxation proposition testament eliminate sure exemptions companies hold received, spell increasing the taxes on exports of coal, gilded and oil.

There’s also a young tax, similar to what other countries have introduced. The so-called salubrious assess testament increase the price of diffuse drinks and other sugary drinks, ultra-processed foods and single-use plastic.

While the proposition suggests several revenue enhancement increases, it also recommends reductions. For example, Petro wants to burn the taxation rank on profits of Canis familiaris and horse race betting, as comfortably as income from lotteries and certain forms of gambling. Currently, winners springiness upward 20% to the government through taxes.

These are “unjustified” taxes, according to the proposal, and U.S. Congress should okay their elimination. Along with that, Petro suggests eliminating a tax on profits from the cut-rate sale of shares listed on the Colombian Stock Exchange. This comes with a caveat, though, as the savings would not hold if the gains are more than 10%.

Colombian Gaming on the Rise

Earlier this month, Coljuegos, reported that the tally assemblage from licenses for games of chance registered year-on-year maturation of 14% inward the first off half of the year. This amounted to COP384 billion (US$89.3 million), a 7% melioration o'er the gaming regulator’s expected results for the period.

Land-based gambling was worth COP151 billion (US$35.1 million), or 42% of the total. iGaming accounted for COP113 meg (US$26,272), 30% of the sum and a year-on-year step-up of 32%.

The proposed assess cuts on gambling, which Petro’s proposition didn’t quantify, would get hold of away division of that revenue. However, offsetting the red ink would follow the income taxation increases.

Colombia’s U.S. Congress has not yet responded to the initiative, but finding favorable reception will human face certain challenges. Ivan Duque, Petro’s predecessor, tried to introduce revenue enhancement reforms that included higher revenue enhancement rates twice during his term.

On both occasions, the results were monumental anti-government protests across the country. There are already concerns that sure taxes, such as the good for you(p) tax, disproportionately targets lower-income segments. As a result, Petro and U.S. Congress may not be on the same page.