Colombian Congress halts online gambling tax hike
Colombia faces a new setback in tax matters. The Fourth Commission of the Senate decided to shelve the Government's tax reform bill, an initiative that sought, among other points, to increase the tax burden on online betting and raise COP16.3 trillion (US$4.3m) to support the 2026 General National Budget.
The vote, held on Tuesday, December 9, ended with nine votes against and only four in favor, undermining one of the main bets of the Ministry of Finance. The Joint Economic Commissions had already approved next year’s budget, but the reform was key to securing new sources of revenue. Last year, a similar proposal by President Gustavo Petro had also been rejected.
In the face of the legislative defeat, Finance Minister Germán Ávila did not rule out exceptional measures. Asked about the possibility of declaring an economic emergency to introduce new taxes, he stated: “We will analyze all necessary measures. We do not rule out any alternative to ensure the fulfillment of goals and social commitments.” He added that President Petro has been clear that “the necessary measures” must be adopted to maintain medium-term fiscal balance.
One of the most controversial points of the bill was the intention to apply a 19 percent VAT to gambling. The sector had already rejected this measure when the Executive implemented it by decree in February, relying on the figure of internal commotion. In theory, it was an extraordinary tax valid for 90 days, but its validity was extended throughout the year.
Companies in the sector warned that the VAT directly affected the operation of the regulated market and reduced resources allocated to the health system. According to the Colombian Federation of Gambling and Betting Entrepreneurs (Fecoljuegos), between March and June 2025 there was a 32 percent drop in real operating revenues, a trend that, they warn, could deepen with new taxes.
With the bill shelved, the Government will have to evaluate alternatives to close the deficit and sustain social programs without the planned tax increase on online gambling.
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