Colombian President Gustavo Petro has called for a gambling tax increase in a previous public statement. This is to strengthen the healthcare sector of the nation.
The president distanced himself from recent proposals for higher general business taxes. Instead, he called for a targeted increase in the gambling sector.
The remarks of Petro came just weeks after the Colombian Congress rejected a budget proposal. This includes an increase in gambling taxes. It have sparked considerable discussion across political and business circles.
La Republica reports that Petro emphasized his commitment to reducing corporate taxes. He specifically focused on small and medium-sized enterprises (SMEs). This is while intensifying efforts to combat tax evasion in sectors like online gambling.
It has been noted by the president that the earlier proposal of his government under the financing law wanted to lower corporate income tax rates from 35% to 30% for SMEs.
Yet, he claimed this initiative was thwarted by powerful political and economic interests. This underscores what he described as undue influence from organized crime networks tied to the online gambling industry.
Petro stated that certain politicians, allied with online gambling operators, promoted this initiative. He argued that it undermined both the broader public interest and the business community.
Furthermore, he criticized business associations for paradoxically supporting decisions that hurt SMEs. It is a sector that forms the economy of Colombia’s backbone.
Statements of Petro have brought out mixed reactions. Supporters applaud his emphasis on tax equity, as well as his efforts to shield SMEs from excessive fiscal pressures.
Critics question the feasibility of Petro’s proposals. They highlight challenges in formalizing illegal gambling operations and addressing alleged entrenched corruption.
Petro has directed government agencies to focus on dismantling tax evasion networks. This is part of his strategy to recover resources diverted from the healthcare sector.
