The National Government has shown openness to modifying three controversial components of its tax reform: the increase in VAT on gasoline, adjustments to gambling taxes, and taxes on alcoholic beverages.
The Minister of Finance, Germán Ávila, announced in Congress that the Executive considers it “appropriate to put on the table the possibility that these VAT increases could be modified” with the aim of minimizing impacts on overall consumption, which he recognizes as “of low amounts,” but seeks to protect the most vulnerable sectors.
Regarding gambling, the minister explained that the Government is considering reviewing the proposed adjustments to achieve “a more progressive dynamic regarding these taxes.” This measure aims to balance fiscal revenue with social equity.
Ávila noted the possibility of reconsidering some taxes on alcoholic beverages, “especially on consumption in lower-income social sectors, such as beer.” This flexibility acknowledges the differential impact these taxes have on various socioeconomic strata.
The minister recalled that any adjustments must respect the constitutional framework, citing Article 351 of the Political Constitution, which sets limits on the budget items that Congress can eliminate or reduce, excluding public debt service and the State’s contractual obligations.
These potential adjustments to the initial proposal are part of the government strategy to maintain a “clearly progressive tax effort” that does not affect the family basket, while seeking consensus with Congress to approve both the budget and the financing law for 2026.
The announcement comes after the government of Gustavo Petro 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. Crucially the reform would have made the 19% Value Added Tax (VAT) on online gambling permanent.
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The National Government has shown openness to modifying three controversial components of its tax reform: the increase in VAT on gasoline, adjustments to gambling taxes, and taxes on alcoholic beverages. The Minister of Finance, Germán Ávila, announced in Congress that the Executive considers it “appropriate to put on the table the possibility that these VAT…
The post Colombian government could modify 19 per cent tax on gambling appeared first on G3 Newswire.