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Colombia: Finance Minister resigns after withdrawal of tax reform

2021-05-04T03:27:34.350Z


Colombia's Finance Minister Alberto Carrasquilla resigned after Duque announced the withdrawal of the tax reform bill.


Duque withdraws tax reform bill and asks for another 3:42

(CNN Spanish) -

The Minister of Finance and Public Credit of Colombia, Alberto Carrasquilla, resigned from office a day after President Iván Duque announced the withdrawal of the controversial tax reform project, according to a statement from the country's presidency

According to the official note, Carrasquilla announced his decision after "a cordial meeting" with Duque.

For the government, according to the text, "quickly reaching a democratic consensus around a reform of the Colombian tax system is an imperative."

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The mobilizations continue for the fourth consecutive day after the president, Iván Duque, presented a tax reform project to try to cover the deficit in public finances.

Credit: LUIS ROBAYO / AFP via Getty Images

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The initial tax reform proposal aimed to increase the value added tax (VAT) of various products and services, as well as to start charging it on products that were exempt.

Credit: LUIS ROBAYO / AFP via Getty Images

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The mobilizations began on April 28, when thousands of Colombians took to the streets to protest against the tax reform, marches called despite the third peak of coronavirus facing the country.

Credit: LUIS ROBAYO / AFP via Getty Images

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Cali has become the epicenter of these demonstrations and the date coincides with the celebration of Labor Day.

In the middle of a crowd there is a bus with the legend "The united people will never be defeated" painted on the windows.

Credit: LUIS ROBAYO / AFP via Getty Images

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A man holds a sign that reads "I'd rather die in the fight than live in the filthy one" from above a tree at the protest against tax reform in Cali, Colombia.

Credit: LUIS ROBAYO / AFP via Getty Images

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"On the other side of fear is the country we dream of" is seen in one of the posters against the tax reform.

Credit: LUIS ROBAYO / AFP via Getty Images

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"They took so much away from us that they took away our fear. No to tax reform" reads one of the banners at the protest on May 1, Labor Day, in Cali, Colombia.

Credit: LUIS ROBAYO / AFP via Getty Images

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"If Duque insists, Cali resists," reads a banner inside the march.

The tax reform proposes the payment of 19% VAT on previously exempt products, such as natural gas, electricity, sports and cultural events, funeral services, among others.

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A woman with her face painted in the colors of the Colombian flag participated in the march against the tax reform which, among other things, proposes to increase VAT from 5% to 19% on gasoline and diesel.

Credit: LUIS ROBAYO / AFP via Getty Images

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"Democracy is not in quarantine" reads a banner of the march against the tax reform, which also refers to the current pandemic by covid-19.

On May 1, Colombia reported more than 18,000 new cases of covid-19, according to the Ministry of Health.

Credit: LUIS ROBAYO / AFP via Getty Images

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After the series of protests, on Friday, May 30, Duque announced that he had ordered the Ministry of Finance to draft, together with Congress, a new tax reform text. Credit: LUIS ROBAYO / AFP via Getty Images

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The new proposal would be made up of "valuable proposals that have been presented by parties, civil society organizations and that have been presented by the private sector," said the president on Friday.

Credit: LUIS ROBAYO / AFP via Getty Images

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At least five civilians and a policeman have died during four days of protests against the Colombian government's tax reform proposal, Ombudsman Carlos Camargo reported this Saturday, citing figures from the Attorney General's Office.

Credit: LUIS ROBAYO / AFP via Getty Images

"My continuity in government would make it difficult to quickly and efficiently build the necessary consensus," said the now former minister, according to the statement.

On Twitter, Duque said he accepted the resignation of Alberto Carrasquilla and appointed José Manuel Restrepo, current Minister of Commerce, Industry and Tourism, as the new head of the Treasury.

Duque withdraws tax reform project in Colombia 1:14

Alberto Carrasquilla had introduced the tax reform bill in Congress on April 15, but the massive protests, which to date have left 19 dead in the country, prompted the government to withdraw the bill.

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Duque has assured that the tax reform is still necessary to clean up the State's finances and continue with social programs.

Therefore, it is proposed to achieve a consensus around a new project.

Source: cnnespanol

All news articles on 2021-05-04

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