COLOMBIANS STRIKES ON THE STREETS TO OPPOSE THE NEW TAX REFORMS.
A massive number of people in Colombia have been on the streets marching in the country’s major cities of Bogota, Medellin, and Barranquilla against the proposed tax reform.
Demonstrators have clashed with the police and so far one person has been reported dead during the strike.
However, the government says that the reform is the key to mitigating the economic crisis that the country is in so far.
Lately, the finance minister of Columbia underestimated the cost of a dozen of eggs. This frustrated the indigenous people who can not afford the cost . The indigenous people took the issue seriously thus boosting demonstration in Columbia.
Colombia’s Gross Domestic Product (GDP) dropped by 6.8% last year. It’s the greatest and deepest crash in half a century. In addition, the coronavirus pandemic has further increased the unemployment rate.
Colombia has the lowest tax revenue compared to other countries in the organisation for economic development(OECD) in 2019. It collected 20% of the GDP taxes.
The president of Columbia Ivan Dugue argues that” the time has come to increase the taxes collected. It is to cover its spending” the president wants to impose a tax on people earning more than $656 a month which is about 2,447,200 Ug shillings.
He also wants to impose a tax on basic services in the upper-middle class and on the funeral with the prospect to raise $6.3 in ten years.
The new reforms would eliminate several current exemptions enjoyed by people. This will also increase the taxes imposed on businesses. The value-added Items will also increase on many items.
The protests were highly organised by trade unions but later joined by the middle-class people, indigenous groups and artists who marched on different streets.
People of Colombia are afraid that if these reforms are imposed, many Colombians will die poor If not hungry.
Currently, Uganda has also proposed 12 new tax reforms on 2nd April 2021 which includes.
1️⃣ The Traffic and Road Safety Act (Amendment) Bill, 2021
2️⃣ The Fish (Amendment) Bill, 2021
3️⃣ Mining (Amendment) Bill, 2021
4️⃣ Tax Appeals Tribunal (Amendment) Bill, 2021
5️⃣ The Excise Duty (Amendment) Bill, 2021
6️⃣ External Trade (Amendment) Bill, 2021
7️⃣ Income Tax (Amendment) Bill 2021
8️⃣ Stamp Duty (Amendment) Bill, 2021
9️⃣ Tobacco Control (Amendment) Bill, 2021
🔟 Value Added Tax (Amendment) Bill
1️⃣1️⃣ Tax Procedure Code (Amendment) Bill 2021
1️⃣2️⃣ Appropriation( Amendment) Bill 2021
Minister of Finance, Matia Kasaija tabled before parliament with12 tax-related bills under which government proposes several budget measures for the coming financial year 2021/2022.
Ugandans earn less than 663,000 Uganda shillings which is approximately $178 a month.
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