Colombia approves tax reform at second attempt

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Measures include cut to corporate rate and VAT rebate for poorest 20%

Gideon Long in Bogotá

The Colombian government pushed a tax reform package through congress on Friday, calming investor nerves but highlighting the challenges President Iván Duque faces in implementing his centre-right agenda.

The package is a version of a reform attempted a year ago and its main tenets remain intact, including a measure to cut the corporate tax rate by one percentage point each year, from 33 per cent to 30 per cent in 2022.

The previous attempt at the reform was declared unconstitutional because of a procedural error, forcing the government to resubmit the legislation to a more hostile congress and against the backdrop of social discontent and large street protests.