Tax Reform for 96 hours

BY OMNIYA ALI

Tax Reform Bill
April 28^th, 2021 marks the day that the people of Colombia could no longer suffer in silence. As a response to the proposed tax reform, people said enough is enough, taking to the streets.

As seen all around the world, the COVID-19 pandemic had dire effects on the economy of Colombia. The already suffering economy took another big hit this past year with the gross domestic product dropping by 6.8%, the deepest crash in half a century. In addition to that, unemployment became more prevalent. The tax reform in question entailed increasing taxes for middle class and wealthy individuals in an attempt to trim deficits and help the poor. If given the chance to be implemented, the reform would have affected anyone with a monthly income of 2.6 million Pesos ($850.78 CAD) or more, it would also have increased taxes imposed on businesses, as well as the removal of various income tax exemptions.

Instilling fear in many, the government saw almost immediate backlash. Colombia’s biggest trade unions, joined by many middle-class people afraid of slipping into poverty organized the first rallies in which tens of thousands of people marched in the capital Bogotá, while other demonstrations took place in other major cities and small towns. In four days time, change had been accomplished. President Iván Duque announced the withdrawal of the bill.

Health Reform Bill
Although demonstrations were initially peaceful, there was a large police presence at the marches from the start. In addition to the tax reform bill that received no acceptance from the Colombian population, a health reform bill that suggested a more privatized system was proposed. Although some, such as the former Health Minister Fernando Ruiz, defended the bill, asserting that it would provide the tools necessary for emergencies such as the coronavirus, critics said it would lead to health care monopolies by strengthening the role of private health promotion companies.

As expressed by Senator Alexander López on twitter “The people’s struggle in the streets against years and years of injustice has achieved the shelving of a reform that would have destroyed health as a right and commercialized it even more in favor of a few.” Marking yet another victory for the people, the health bill was nixed and as promised if the bill did not progress, Health Minister Fernando Ruiz announced his resignation.

Police Violence
Although demonstrations began with a focus on the tax reform, the concern was expanded to the health bill, inequality and police violence. As observed by Human Rights Watch, death tolls have reached up to 63 individuals with the alleged aggressors being the police. The Colombian Federation of Education Workers, which led many protests, has reported thousands of human rights violations, denied by the government. Some of these violations include over 2,000 instances of police violence, more than 1,600 arbitrary detentions and 25 confirmed acts of sexual violence, 65 eye injuries, and 346 forced disappearances of protestors, with Indigenous, Afro and poor communities being the primary targets of repression.

What’s Next?
Under pressure, President Duque has seemed compliant with public needs. However, after announcing the withdrawal of the current tax reform bill, he also stated that tax reforms are still “necessary” for Colombia, suggesting that plans may be implemented again once the unrest settles down.

Rather than addressing the state violence exhibited towards protestors, news outlets are drawing attention to the “vandalism” of the demonstrators. Additionally, President Duque continues to authorize the deployment of more troops to suppress demonstrators.

Concurrent with all the unrest, rejection, and denial of injustice, in the midst of the worst health and economic crisis in Colombia, the government seems determined to pay billions of dollars for 24 Lockheed Martin fighter planes. This understandably has received a roar of disapproval from the general population.