Colombia's President Withdraws Tax Reform After Deadly Mass Protests

Colombia's President Ivan Duque has withdrawn a contentious tax reform bill following the deadly mass protests in the past days.

Al Jazeera reported that the president of Colombia announced he was withdrawing the tax reform proposal on Sunday.

Thousands of protesters in Colombia gathered on the streets and demonstrated against the proposed tax reform after it was announced last Wednesday.

Under President Ivan Duque, the Colombian government wants to tax the income of those earning over $656 a month, lowering the threshold to broaden the tax base.

The government also wants to impose a tax on funerals and essential services in upper-middle-class areas. The government's proposed measure is reportedly intended to raise some $6.3 billion in 10 years for the country.

Apart from the citizens, the tax reform proposal also garnered opposition from many Colombian lawmakers, including those from the coalition of parties that support Ivan Duque's administration.

Colombia's President Withdrawing The Tax Reform

The president's announcement was aired on the television, saying that his government would work to produce new proposals and pursue an agreement with other parties and organizations, BBC reported.

The canceled plan featured expanded taxes on citizens and business owners and increased sales tax on utilities and some food.

The Colombian government insisted that the plan is important in stabilizing the country's finances while maintaining its credit rating and funding for social programs, Reuters reported.

"I am asking Congress to withdraw the law proposed by the finance ministry," said Duque, adding a directive to urgently process a new law that is "fruitful of consensus" to prevent financial uncertainty.

Reuters noted that Colombia's Central Bank warned last Friday that failure to approve the tax reform could harm the economy. However, many working-class Colombians are already struggling due to the COVID-19 pandemic. The citizens argued that the reform would significantly affect them.

"It is a moment for all of us to work together without paltriness," said Duque in his statement, adding that not pursuing the tax reform will allow them to state clearly that there will be no increase in VAT for goods and services.

Colombian Protesters Celebrate the Tax Reform Withdrawal

Lawmakers, unions, and other groups welcomed the announcement as a victory. Celebratory "cacerolazos," a traditional protest where people beat pans and pots, could be heard in some neighborhoods.

Deaths related to the protests were reported around Colombia since it began on Wednesday. Most violent demonstrations were reported in Cali, where Reuters noted that three deaths had been confirmed.

Cali is known to be the third-largest city in Colombia. One death each was reported in Neiva city and Madrid, while a police officer was killed in Soacha.

Human rights groups had reported police abuses and alleged that there were more than 20 deaths. The groups emphasized that police abuses took place, especially in Cali.

There is no definite national count of deaths connected to protests yet. But the procurator's office said it was investigating 14 deaths across the country.

Despite withdrawing the tax reform, Duque still stressed on Sunday that the tax reform remains necessary. The Colombian president noted that there was a consensus on the need for temporary taxes on businesses and dividends and an increase in income tax for the wealthiest.

WATCH: Colombia's President Withdraws Tax Bill Amid Protests - From Bloomberg Quicktake: Now