The Minister of Finance does not rule out possible changes to VAT in an upcoming tax reform.
The original version of this article contained incorrect information about a supposed VAT increase, a fact that contradicts the government's claims. See correction at the end.
During a press conference on the 2025 Medium-Term Fiscal Framework, Finance Minister Germán Ávila announced that the possibility of President Gustavo Petro's administration making changes to VAT in a new tax reform has not been ruled out.
"We also do not rule out moving toward a broader reform that, given the current tax expenditure conditions in Colombia, would include a review of the VAT structure and other sources of revenue," reads the 2025 Fiscal Framework document presented this Friday.
Germán Ávila, Minister of Finance. Photo: Néstor Gómez, EL TIEMPO
Ávila reported that the tax reform " will consider the issue of VAT, but not a generalized VAT. On the contrary, he stated that they are "reviewing the issue for some specific sectors."
New taxes that the Government seeks to introduce in the Tax Reform The 2025 Fiscal Framework document also revealed the potential new VAT taxes the Executive Branch will seek to add in the new tax reform, which would take effect in 2026. According to the document, they would be:
- Gambling.
- Platforms.
- Churches.
Also, according to the document, the tax reform aims to impose a "special tax on coal and oil," in addition to targeting taxes on anything that increases pollution: "pesticides, noise, vaping, among others."
The document also revealed potential new VAT taxes. Photo: iStock
Meanwhile, according to information from the Minister of Finance, a decree is expected to be issued in the coming days that will raise the price of diesel for the vehicle fleet to international prices.
"This has already been done with the price of gasoline, and adjustments are also being made to the price of diesel and diesel fuel. Now, for non-truck vehicles that use diesel, an international price will be established that will meet all the requirements this entails," explained Germán Ávila.
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