Colombia reopens debate on betting taxation in the reform
Colombia resumes discussions on the taxation of its betting industry. The director of the National Tax and Customs Directorate (Dian), Carlos Emilio Betancourt, confirmed that the Colombian Government will present a structural tax reform on July 20 that reopens the debate on taxes on the betting and gambling sector.
The initiative that the Executive will take to Congress contemplates possible taxes on fuels, betting and gambling, changes in wealth tax for individuals, reduction of VAT exemptions, increases in taxes on alcoholic beverages, and revisions in income tax returns. Betancourt emphasized that the tax strategy seeks to establish "a taxation that is structurally progressive in the sense that there is a greater burden for those who earn more." Although the official did not specify percentages for the betting sector, his statements reopened the debate on taxes on gambling operators.
Colombia's recent history reflects multiple failed attempts to increase taxation on betting. President Gustavo Petro's government presented several tax reform projects that contemplated additional taxes on the sector, but none achieved legislative approval. In December 2025, the Executive tried to include gambling taxes through Legislative Decree 1474, which contemplated the imposition of 19 percent VAT on gross online gaming revenue. However, in April 2026, the Constitutional Court of Colombia declared the decree unconstitutional and ordered the return of amounts collected during its validity.
Legislative and judicial resistance has frustrated previous attempts at tax reform in the sector. The Government has sought to use decrees to circumvent legislative weakness but has encountered constitutional obstacles. This new reform presented on July 20 represents a return to the ordinary legislative path, although it faces a Congress that has historically shown reluctance to increase taxation on betting.
In the Latin American context, Colombia represents a case where the betting industry has managed to block unfavorable tax reforms, contrasting with realities in Peru and other markets where governments have imposed more aggressive tax burdens. The new Colombian tax reform proposal suggests that the Executive maintains as a structural objective to increase tax revenues from the betting sector, a priority that will likely dominate regional regulatory dynamics in the coming months.
Tags: Colombia tax reform, Colombia gambling taxes, Dian Colombia