National strike April the 28th

The COVID-19 pandemic has left great consequences in Colombia, not only from a health point of view, but also economically. Under these circumstances, the National Government filed before the Congress of the Republic, the tax reform proposal called "Law of Sustainable Solidarity", which seeks changes in the country's tax system. President Iván Duque has indicated that the tax reform aims to fortify the country's economy, after being seriously affected by the arrival of the coronavirus. This proposal is also meant to support social measures that have been implemented, such as the Solidarity Income and the return of the IVA.

Nevertheless, some of the measures proposed by the Sustainable Solidarity Law would have a great impact on the economy of Colombian households. The so-called Sustainable Solidarity Law will seek the collection of $ 25 billion pesos through multiple forms, some of which include the collection of the Value Added Tax (IVA) and the increase in Colombian income tax contributors. In this sense, although the products of the basic family basket would not be taxed, they would be eliminated from the exempt goods, and passed on to exclusion. This would cause an increase in their price, since the inputs for the production of food such as meat, chicken, rice and eggs, would have to pay IVA. In the exempt condition, producers can recover the IVA paid on production. However, by going to exclusion, the IVA paid in production cannot be recovered; therefore, an increased price to the final consumer is caused, making food more expensive; contrary to what the President of the Republic affirmed in recent weeks against not touching the food of Colombians in this reform. Additional to increased food pricing, follows public services, gasoline, home appliances, among others. 

As expected, Colombians do not agree with this new proposal, and consequently plan to manifest their unconformity through a national strike next Wednesday, April the 28th. Duque had promised during presidential campaign days that there would be no increases in IVA or tax reforms; however, just like any other promise made by a Colombian president before, it was broken. Most people understand that the country is in great debt right now, but it is frustrating that having in mind all these issues, the salary of senators remains untouched. Many countries during the pandemic decreased the salary of their governors, congressmen, and senators; yet in our country the president in fact increased their income on December the 24th of 2020. Additionally, many inconsistencies and absurd declarations have set people off even more. For example, in a recent interview Alberto Carrasquilla, author of the tributary proposal, claimed that a dozen  eggs costs $ 1.800 pesos. How is it possible to stay calm, when the actual people who are in charge of these types of important decisions don’t even know basic prices of products?

Although it has not yet been decided that these regulations will come into force in Colombia, it should still be a matter of worry for all of us. Many people are also concerned for the rise of covid cases after the riot, so if you plan on protesting make sure all of the safety measures are taken.

https://colombia.as.com/colombia/2021/04/21/actualidad/1619037914_425022.htm