The government of Colombia’s President Gustavo Petro seeks a tax reform that would increase revenue for the government with $6.5 billion (COP26 trillion).

The tax hike that was proposed to Congress on Monday and seeks to secure the financing of the government’s 2026 budget is more than double the tax hike that was rejected by Congress last year.

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President and opposition clash over Colombia???s 2026 budget bill

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Last year, Congress refused to approve Petro’s budget and forced the government to cut spending by rejecting the 2025 finance law, which sought a $3 billion (COP12 trillion) revenue hike.

This year, the government seeks an even bigger hike, mainly through increased taxes on fuel, profit, online gambling and cigarettes.

With this proposed revenue increase, the government seeks to spend $138.7 billion (COP557 trillion), which includes $21.9 billion (COP88 trillion) on investment and $25.4 billion (COP112 trillion) on debt payments.

Petro’s far-right opponents in Congress have already they would also seek to sink this year’s budget.

The liberal and conservative members of the opposition did not immediately reject the budget and the tax reform, but are likely to seek changes as the bills go through Congress.

The president, a vocal critic of neoliberal politics and its austerity measures, warned Congress that he would seek financing from the country’s business elites if the opposition again is able to sink the budget and the tax reform.