Congress rejects pension tax proposal

Colombia's congress has approved a tax reform bill that scraps a government proposal to introduce a tax on pensions, the presidential news service said in a statement Friday. The decision effectively blocks a government attempt to extend its tax portfolio to include a duty on pensions as part of an emergency fiscal strategy announced by President Alvaro Uribe in October. Uribe has expressed his satisfaction at steps taken by congress to push forward a more complete tax initiative in light of difficulties surrounding the issue, noting his confidence that the country's senate and lower house will further improve the bill over the coming week, the statement said. A high-ranking executive from a local pension fund manager told BNamericas previously that the government was trying not only to generate fresh resources but also create equilibrium within the public pension system. The government does not wish to alter the existing rights of affiliates within the public pension system, the executive added.