Colombian President takes back "new controversial tax bill"

Bogotá, Colombia: Colombian President Iván Duque has withdrawn a controversial tax reform bill after four days of major protests across the country. In a statement on television, he said his government would work to make new proposals and get recommendations from other parties and organizations.

He has previously insisted that tax increases are needed to respond to the economic crisis caused by the COVID-19 pandemic.

However, tens of thousands of people took to the streets in anger over the newly proposed tax bill.

Trade unions that organized the protests said it would have an exorbitant impact on the poorest people already struggling with the economic impact of Covid-19.

President Duque recognized in his statement that this was a moment for the protection of the vulnerable, an invitation to build and not to hate and destroy.

"This is a moment for all of us to work together without pallor," he added.

"A path of consent, of clear perceptions. And that gives us the opportunity to say clearly that there will be no increase in VAT for goods and services."

Colombia's gross domestic product (GDP) fell by 6.8% last year, its deepest collapse in half a century, and the coronavirus pandemic further increased its unemployment rate.

The proposed reforms would lower the salary tax threshold, affecting everyone with a monthly income of $ 656 or more.

It would also remove many of the current exemptions enjoyed by individuals and the increase in taxes levied on businesses, and the number of goods covered by value-added tax (VAT).

The proposals have caused outrage among many Colombian people who say they are already struggling to feed their families during the pandemic.

Many middle-class Colombians and people from indigenous groups joined the demonstrations against the new tax bills.