Colombia tax reform protests continue as President withdraws bill; finance minister quits

Despite the withdrawal of the proposed tax reforms by the right-wing administration of President Ivan Duque, tens of thousands of Columbians and members of trade unions continued their violent protests in the streets of Columbia on Monday. At least 17 have been reported dead so far in major clashes between the demonstrators and the police across different cities, Colombia's office of the ombudsman said in a statement. The tax reforms, contested as hiking financial pressure on low- and middle-income groups was shelved after widespread opposition and angst from the opposition lawmakers in Columbia and the citizens, many of whom demanded the levelling of sales tax on utilities. Colombia’s finance minister Alberto Carrasquilla resigned earlier yesterday following five days of outrage which included riots and violent clashes as citizens demanded scrapping of 19 percent of sales tax on gasoline and the government's expansion of the country’s tax base. 

“Withdrawing this tax reform or not is not what should be debated,” Duque said in a nationally televised speech. “The real debate is how to guarantee the continuation of social programs," he had argued.

As nationwide angst flared in aftermath of his remarks, the Columbian President said in a video address, "I am asking Congress to withdraw the law proposed by the finance ministry and urgently process a new law that is the fruit of consensus, in order to avoid financial uncertainty."  Although, sought to rewrite the tax reform plan which he described will stabilize Colombia's finances across every stratum. 

Despite pulling back the tax reform proposal, protesters continued the marches condemning the Columbia government’s “mishandling” of the COVID-19 pandemic, as they alleged that the withdrawal of the tax proposal “wasn’t enough”. Rallies were held in Columbia’s populous cities including Bogota and Cali, as well as Medellin, Barranquilla, and Cartagena.  In many cities, aggravated protesters clashed with the law enforcement, who used tear gas canisters and stun grenades to disperse the angry mob. Last week, a police officer was stabbed by the reform seekers in the city of Soacha south of Bogota, incident demonstrators told reporters on the ground was flared by officers’ human rights abuses against the protesting crowd. "The vast majorities mobilize in peace and say no to looting. No to violence," Cali Mayor Jorge Ivan Ospina said on Twitter, sharing the video footage of the anti-bill marches. 

[Police block a road as truckers and their vehicles take part in a national strike against the tax reform in Bogota, Colombia, on May 3. Credit: Fernando Vergara/AP Photo]

[Protesters wearing Guy Fawkes masks carry empty coffins during a national strike to protest a government proposal that would raise taxes, in Bogotá, Colombia. Credit: Fernando Vergara/AP File]

'Consensus' on temporary taxes, argued President 

The government’s proposed reform, as the Duque said in a broadcast, was aimed at Columbians earning above $656 per month. The proposal would have eliminated the key exemptions and surged the value-added tax (VAT) on goods and services. Duque said there was a “consensus” on the temporary taxes on the businesses and higher tax implement on the wealthiest. Tens of thousands of Columbians expressed outrage at tax hikes as the economy was battered by the coronavirus pandemic and businesses had largely struggled to survive due to the clampdowns. As the outrage spiralled nationwide, protesters vandalised and ransacked buildings, and caused damage to the property, as they confronted the police in a national outcry of pandemic-related poverty, loss of jobs and rising unemployment. Columbian Twitter also expressed outrage at the administrative policies, demanding reforms as they ran the #FixTheCountry hashtag.