Discussion about: Petro government tax reform We have launched a project with the aim of achieving this, and have begun a new movement. 16.3 billion pesos. The adjusted version makes significant changes compared to the original effort and reorganizes several funding sources.
as a publisher time, The Minister of Finance has presented guidelines to various MPs with the aim of removing obstacles to legislative debate and clarifying which taxes will remain, be scrapped and which will be converted.
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The main revisions will be seen in taxes applied to alcohol, cigarettes, and tobacco products, which are expected to contribute about P4.1 trillion in 2025. This reduction marks a suitable shift in fiscal strategy, as the original proposal anticipated a significant increase in levies.
According to the data revealed in timethe government withdrew the idea of including value-added tax on beer, arguing that the measure could have a regressive impact on households with low incomes. However, the intention remains to increase taxation in this area through other mechanisms to adjust existing burdens.
The Ministry of Finance also highlighted the expected contribution from Dian’s executive action. According to information disclosed by , this component is projected to generate P3.7 trillion thanks to regulatory measures, technological modernization, and mechanisms that seek to improve evasion control. time. At the same time, it is also proposed to lower the tax base for wealth taxes. Currently, this duty applies to taxpayers with property from UVT 72,000, but the government proposes to start the duty from UVT 40,000 and increase the tax rate by up to 5%.
Another thing that remains in the new version is the 19 percent tax on games of luck and chance. The measures remain in place despite mention of a possible review several weeks ago.
The amount recovered through this means is estimated at P1.6 billion. At the same time, the administration confirmed that it would waive the application of value-added tax on gasoline and the same tax on expensive cultural and sports tickets. These decisions are justified according to the analysis cited by timein its potential impact on consumers and the cultural sector.
The proposal also includes new rules for hybrid cars, which will be subject to a 19% value-added tax. Taxes on temporary profits related to lotteries and gambling will also be increased from 20% to 30%, and the tax rate applied to dividends sent overseas will also be increased.
For financial institutions, a levy setting the total tax rate at 50% will be maintained, while for the energy and mining sector it is proposed to equalize the additional burden on coal with the burden faced by oil, as long as prices exceed a certain threshold.
Regarding income, the project proposes a gradual adjustment starting from 2027. The changes include increasing the maximum tax rate to 41% for high-income taxpayers to make the system more progressive. According to a report published by timeIf approved, Colombia would have one of the highest rates in the region for high-income earners. Furthermore, a gradual increase in the carbon tax is proposed, giving special treatment to coal until 2029.
While debate continues in Congress, parallel projects are calling for temporary tax breaks, incentives for businesses, and payments to groups like Dian and people in debt to transit authorities. The initiative will be handled independently and includes measures to stimulate the economy and improve payment conditions for various obligations. With both discussions underway, the country is preparing to hold definitive fiscal discussions in the coming months.
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