Colombia’s tax revenues are relatively low, and its tax code runs counter to desirable taxation principles. We document this point in detail in the text and use it as a starting point for proposing road maps to improve the current tax code.

This process is not merely a matter of adjusting technical parameters. Instead, it entails addressing the principles that should govern public debate, including legitimacy and the importance of graduality when implementing changes.

We propose comprehensive reforms to corporate, personal, environmental and health taxes, among others. The proposed changes would take about 10 years to take full effect, allow for a more progressive, more efficient and fairer tax code and raise more than 3 percent of GDP in additional income.