Colombia’s Government reduces tax reform, adjustments to gambling levies

The Finance Ministry scaled back its proposed tax reform with adjustments that include new levies on gambling and alcohol.

Colombia’s Ministry of Finance has announced that the government will reduce the scope of its proposed tax reform from COP 26.3trn to COP 16.3trn. 

Finance Minister Germán Ávila Plazas explained before Congress and economic committees that the move is intended to build consensus and secure approval for both the 2026 budget and the accompanying financing law.

The government originally presented a COP 557trn budget for next year, supported by a financing plan worth COP 26.3trn. 

In his remarks, Ávila said the administration is prepared to trim COP 10trn from overall spending and adjust the reform’s revenue target accordingly.

Among the proposed changes are increased VAT on fuels, as well as higher levies on gambling activities and alcoholic beverages. 

While the government remains committed to maintaining measures on income and wealth taxes, Ávila underlined that the reform aims to be progressive and sustainable in the medium term.

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“We propose to maintain the measures on income and wealth that guarantee a high level of progressivity,” Ávila said.

The reduced proposal marks the third tax reform initiative advanced by the current executive administration.

By scaling it back, the government hopes to address fiscal sustainability while easing tensions with lawmakers on the lookout of approving an overly ambitious plan.

Alex Rivera

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My goal is to explain how gaming, esports, and betting intersect in ways that readers can actually understand, without stripping away the entertainment that makes the space compelling.

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