Congressional installation: Parties anticipate difficulty in approving new tax reform

In the context of the Independence Day celebrations on July 20, 2025, the Congress of the Republic will elect the new presidents of the House of Representatives and the Senate. Additionally, legislative committees will be formed, and some bills will also be filed. However, one of the issues that remains on the agenda is the political climate for the approval of a new tax reform.

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The idea for a new tax reform has been around since the presentation of the Medium-Term Fiscal Framework (MFMP) by Finance Minister Germán Ávila on June 15. There, the short-term macroeconomic assumptions and the method for financing the nation's coffers were outlined, and a new tax reform was introduced that projects revenues of $19 billion. Although the text of this bill is not yet known, the Ministry of Finance is expected to submit the text to Congress. However, a date for this submission has not been determined. With this, the various political parties have spoken out against the initiative and indicate that they see its approval as difficult.

" It's very complex, if a financing law that's essentially a tax reform didn't pass during the previous term. Coming up with a tax reform this past year, I see it as very complex, even from the economic committees. I don't see a future for a tax reform this past year," asserted Jhon Jairo Roldán, a senator from the Liberal Party.

In turn, Democratic Center Senator María Fernanda Cabal questioned why President Gustavo Petro wants a new tax reform.

" Another crazy idea from Petro. He wants more money? Why? For France to fly in a helicopter, for him to travel the world? For him to pay for not killing hitmen? Crazy. There's no money here. He'd rather stop spending. Excessive public spending is corruption, and the total peace deal was a failure. Now he wants to pass the law that should have organized the country in his first year. I understand there's demand and pressure from criminal groups that want exceptional transactional status. It can be done, but not the way Petro wants, rewarding bandits," the parliamentarian pointed out.

It's worth noting that since Petro took office, a tax reform has been approved, the 2022 one, and another was introduced last year, but it was defeated by the legislature. Now, a new one is expected to be introduced, and it will have until June 20, 2026, to be approved; otherwise, it would be shelved, as this would mark the end of this government's final term.

What projects would you seek to prioritize?

At the opening of the Congress of the Republic, both congressmen and the government announced the submission of new bills for debate in the various committees and plenary sessions. They also anticipated progress on current bills, such as health care reform, justice reform, and others.

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“There are a whole series of projects, there was a meeting where some of congressional origin were prioritized, but of course in my opinion the priorities are the discussions that must take place in this Congress of the Republic that cannot be postponed, the health reform, the justice reform, moving forward with the agrarian jurisdiction and we will see what decision in economic matters the Government makes after the sinking of the financing law” , said María José Pizarro, senator of the Alternative Indigenous and Social Movement (Mais). In addition, she mentioned that in this legislative session the Government must file the Total Peace bill.

"More than controversy, it's the fact that the discussion is taking place, on issues that weren't even discussed within the framework of the peace agreement, which at the time were the entire regulations for submission to justice, and that didn't make much progress. Not only to comply with the peace agreements, but also to provide ways to unlearn and eradicate violence from Colombian society ," the parliamentarian stated.

Leidy Julieth Ruiz Clavijo

Portfolio Journalist