The Colombian government is set to present a new fiscal project to Congress in the second half of 2025, aiming to raise between 19 and 26 trillion pesos through significant tax modifications.
The proposed reform focuses on revising Value Added Tax (VAT) exemptions, potentially eliminating some or increasing the general rate, currently at 19%. The consumption tax on restaurant services could also be increased to match the VAT rate.
Furthermore, the reform targets income tax for individuals, aiming to broaden the tax base, despite Colombia already having some of the highest rates in the region. The project also includes new taxes and faces opposition due to concerns about increased government spending.