New setback for the Petro Government: Court suspends decree creating taxes for the electricity sector
The Constitutional Court suspended the decree issued by President Gustavo Petro's Government within the framework of the economic emergency, through which new charges were created for electric power generation companies...
TL;DR
- The Constitutional Court has suspended Decree 0044 of 2026, issued under an economic emergency.
- The decree aimed to impose new charges on electricity generators to support financially distressed companies like Air-e.
- The suspension is temporary and pending a final decision on the decree's constitutionality.
- Two new financial mechanisms were proposed: a 2.5% parafical contribution and a temporary tax credit for hydraulic generators.
- The electricity generation sector had expressed concerns, calling the decree confiscatory and potentially illegal, warning of significant financial impacts.