Reforming Colombia’s tax system is key to keeping the country on a growth path, according to new finance minister Mauricio Cardenas. Mr Cardenas, who has recently moved from leading the country's energy and mining ministry to replace Juan Carlos Echeverry, who stepped down for personal reasons last September, highlights the damage that an inappropriate taxation policy can perpetuate in fast-growing countries, and the challenges in changing such rules.
In particular, Mr Cardenas is proud of having lowered employers’ burden on payroll tax and increased tax on wealthy individuals. Reforms have been based on the ministry’s ultimate objective – to reduce inequality. Because of this, Mr Cardenas believes that Colombia’s new rules are likely to be imitated by others in Latin America.
