Colombia's Santos says tax reform must and will pass this year

Colombian President Juan Manuel Santos said a tax reform bill, considered vital to help the country cope with plunging oil revenues, will be approved by Colombia's congress before the end of 2016 and would not be delayed by the country's peace process.

Speaking to investors in London, Santos said he hoped the government would soon conclude lengthy talks with leftist FARC rebels to end Latin America's longest war but said this would not detract from fiscal reform.

"This will be approved, this has to be approved before the end of the year for the reform to start producing its effects next year," Santos said referring to the tax reforms. "There will be no problem."

Investors are keen for signs of progress on the reform without which the country could see a downgrade to its credit ratings. Standard & Poor's said in February it could cut Colombia's rating if there is no progress on the plan this year.

Santos said he had support for the tax overhaul plan from parties accounting for about 80 percent of Congress and he denied he was prioritising the peace process, which the government had hoped to conclude in March. "So some people are saying the president is playing politics, he wants the peace and he will sacrifice the fiscal reform.