The government of Gustavo Petro has presented a new tax reform to Congress aimed at raising COP 26.3 trillion (around USD 6.4 billion). The tax hike seeks to secure the financing of the government’s 2026 budget and is more than double the tax hike that was rejected by Congress last year. The initiative, introduces changes that would affect retirees, consumers, and businesses, including a new withholding tax table for those receiving pensions. This year, the government is also looking to raise money through increased taxes on fuel, profit, online gambling and cigarettes.
The reform includes a raft of new taxes on gambling. Crucially the reform would make the 19% Value Added Tax (VAT) on online gambling permanent. Gambling operators must pay the VAT, whether they operate inside or outside Colombia.
Another significant point is the modification of the tax rate on occasional earnings from lotteries, raffles, bets, and similar activities. Article 22 of the reform sets this tax at 33%.
In addition the land based sector will face increased taxes if the new tax reform bill is approved. The monthly taxable bases for various gaming activities have been established as follows: slot machines are assessed at 20 Tax Value Units (UVT), while gaming tables have a taxable base of 290 UVTs. For electronic gambling machines, which may operate in establishments whose primary commercial activity is not related to games of chance and luck, the taxable base is set at 10 UVTs. Additionally, bingo games are taxed at 3 UVTs per bingo seat, and other types of land-based gaming are subject to a taxable base of 10 UVTs. The value of a UVT currently stands at COP $49,799.
The Minister of Finance, Germán Ávila, defended the initiative and emphasized the importance of a broad and responsible debate in Congress. He stated: “We hope for a serious and responsible debate that includes the opinions of the various social, political, occupational, and economic actors of the country, and in this sense, we believe that ensuring the country’s economic and fiscal stability is a priority.”
The tax reform includes critical tax changes aimed at strengthening public finances and increasing revenues, according to Minister Ávila.
In February the Ministry of Finance decreed three new taxes would be in effect until December 31, 2025, with the aim of financing expenses related to the emergency in Catatumbo. With Decree 0175 of February 14, 2025, a 19% tax was established on online games of chance, a 1% levy on national sales and exports of oil and coal, and a 1% tax on the stamp duty for transactions exceeding $300 million. In May following the announcement of the conclusion of the 90-day state of internal commotion, the Colombian government clarified that the three taxes implemented to address the economic emergency would be extended until the end of the year.
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The government of Gustavo Petro has presented a new tax reform to Congress aimed at raising COP 26.3 trillion (around USD 6.4 billion). The tax hike seeks to secure the financing of the government’s 2026 budget and is more than double the tax hike that was rejected by Congress last year. The initiative, introduces changes…
The post Industry faces increased taxation under new tax reform bill in Colombia appeared first on G3 Newswire.