The tax bill for companies would exceed $10 trillion
The Petro government sought to approve a financing law in 2025 with which it intended to collect $26.3 trillion annually to cover the fiscal deficit and...
TL;DR
- The Petro government's tax changes since 2024 have increased the financial burden on Colombian companies.
- The combined impact of direct taxes, elimination of deductions, new sectoral burdens, and regulatory costs could exceed $5 trillion to $10 trillion annually.
- A review of 14 Antioquian companies shows a total tax contribution of $6.83 trillion in 2025.
- Measures include increased withholding taxes, elimination of fuel subsidies, and proposed VAT on certain goods.
- Tax advisor Julio César Leal notes that increased withholding tax reduces business liquidity.
- The elimination of fuel subsidies significantly impacts transportation and logistics costs.
- Companies may opt for internationalization or advanced tax planning to mitigate risks due to tax volatility.
- The lack of stability in the tax system is a major challenge for long-term investment planning.