Keep Colombia Wealth Tax for Quake Rebuild, Ocampo Says
José Antonio Ocampo urges keeping Colombia wealth tax to fund earthquake reconstruction, calling it the most progressive tax. The government wants to phase it out, but fiscal room is thin. The post Keep Colombia Wealth Tax for Quake Rebuild, Ocampo Says appeared first on The Rio Times .
Former finance minister José Antonio Ocampo urges the Colombian government to retain the wealth tax for earthquake reconstruction efforts. Ocampo argues the tax is the most progressive and offsets under-declared capital income, making it a fairer levy than alternatives like the 4×1,000 financial-transactions tax. The wealth tax, known as impuesto al patrimonio, imposes an annual levy on net worth, affecting only the wealthiest taxpayers.
Its modest revenue—barely COP 1 trillion (US$328 million) in 2024—does not outweigh its progressive nature, according to Ocampo. With only 32,397 taxpayers paying the wealth tax in 2024, roughly 0.5 percent of individual income-tax filers, the levy remains narrow in its reach. However, the government plans to eliminate the wealth tax gradually, with implementation set for 2027. The timing of any reform creates a fiscal challenge, as reconstruction funds are urgently needed.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
