Colombia's proposed fiscal reform will likely lower corporate taxes and streamline administration, but limited congressional support for consumer tax increases will prevent the government from securing sufficient revenue to tackle rising debt, thereby sustaining investor concerns and pressuring the country's sovereign risk and financing conditions. The Colombian government submitted on Oct. 29 a fiscal reform proposal that would combine higher revenues, spending cuts and incentives for private investment. Key provisions include raising the value-added tax on some goods and services, expanding personal income tax liabilities, increasing health contributions for workers and companies and implementing a sin tax on alcohol and tobacco, while financial institutions would retain a five-percentage-point corporate tax surcharge through 2030. In turn, the corporate income tax rate would drop from 35% to 33% in 2027 and to 31% in 2028.