Colombia's government agreed on Monday to modify a tax reform proposal under debate in congress and continue to allow oil and mining companies to deduct royalty payments from their taxes in the wake of a wave of industry criticism.
The government has agreed to back continued royalty deductions in exchange for raising income taxes on extractive industries by 5% and increasing an export tax to 20% for oil and coal sold above certain threshold prices, Finance Minister Jose Antonio Ocampo told journalists.
