Colombian Lawmakers Block Tax Rises, Clouding Fiscal Outlook

Colombia’s congress rejected President Gustavo Petro’s proposed tax increases, adding new uncertainty to the country’s worsening fiscal outlook.

The bill, which was intended to raise 16 trillion pesos ($4.2 billion) in additional revenue to fund the 2026 budget, was voted down by the senate’s economic committee.

Congress had previously approved a 547-trillion-peso budget for next year, but without the additional revenue the government requested, it will now need to delay or cut planned spending.

It remains uncertain whether the Petro administration, which leaves office in August 2026, will implement spending cuts or leave the adjustment to the next government. ...