Building an Equitable Fiscal Future for Latin America
Colombia’s upcoming July 27-28 summit on equitable taxation marks the first step toward protecting the interests of Latin America and the Caribbean in international tax negotiations. With inequality and tax avoidance on the rise, the region’s governments must forge a tax regime based on the principle of shared prosperity.
BOGOTÁ – On July 27-28, Colombia will host the first ministerial summit for sustainable, inclusive, and equitable global taxation, with the support of Brazil and Chile. The choice of venue is not coincidental: it reflects Colombia’s commitment to tackling poverty and inequality through progressive taxes.
The Colombian government’s flagship tax reform, spearheaded by the finance ministry under my direction and approved by Colombia’s Congress in late 2022, is a prime example of this commitment. But, following its implementation, our focus must shift to improving tax progressivity across Latin America and the Caribbean (LAC), which remains among the world’s most economically unequal regions.
Latin American countries suffer from staggering income disparities, with the top 10% of earners making 22 times more than the poorest 10% and the top 1% accounting for 21% of the region’s total income. Wealth inequality is even more pronounced, as the region’s wealthiest 10% own 77% of total household wealth, compared to less than 1% for the bottom 50%.
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