Colombian Finance Minister Herman Avila recently announced that the government will submit a new tax reform proposal to Congress between August 15 and 20, 2025. One of the core elements of the proposal is the re-taxation of the gambling industry. This reform plan, named "Fiscal Agreement," aims to raise more funds for the national budget of 2026 and respond to the financial pressures following previous tax reform obstacles.
The new scheme is expected to generate additional revenue of 26.3 billion Colombian pesos (approximately 6.3 billion US dollars) by taxing gambling platforms, religious organizations, and other industries. The overall budget is projected to be 556.9 billion pesos, a 3.7% increase from the previous fiscal year. Avila emphasized that Congress should take high responsibility in promoting this plan and ensure that the reforms are successfully implemented within the national economic strategy.
The reform draft will undergo legislative review in the third and fourth committees of the House of Representatives and the Senate, with the first round of debates expected to be completed by the end of September. Although the government has expressed a willingness to advance, media reports suggest that President Petro's tax reform plan may face further congressional resistance due to the upcoming elections and a complex political landscape.
In addition, in February this year, to address the emergency situation in the Catacombs region, the government temporarily established three types of taxes, including a 19% VAT on online gambling, stamp duty, and resource export tax. These emergency taxes, originally set for 90 days, have been extended until the end of the year. According to data from the Colombian Gambling Association (Fecoljuegos), the new taxes have led to a 30% decline in total gambling revenue, a sharp decrease in operator income, and pressure on the allocation of medical resources. If policies are not adjusted, the regulated gambling ecosystem may face further impacts.
