Income tax reform in Colombia and Venezuela: A comparative history

Abstract

This paper compares the history of income tax reform in Colombia and Venezuela since the late 1950s. Brief histories of income tax reform in each country describe both what was proposed in major studies and what was enacted. The present Colombian income tax is seen to be much better than the Venezuelan system. Colombia has also made more use of local tax experts than Venezuela. The final section speculates that the ready availability of oil revenues explains why Venezuela does not have a better income tax and more local analysis of tax policy.