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The Colombian government is considering possible changes to the tax on games of chance as part of economic policies to mitigate the current climate emergency in the country. The plan was presented by Finance Minister Germán Ávila at a recent meeting of the Cabinet.
According to Ávila, the idea forms part of additional measures being studied alongside the previously announced wealth tax targeting corporations. While discussing complementary actions to the corporate wealth tax, the minister stated that the government is considering “the possibility of making an adjustment to the tax on games of chance.”
He added that the action will consist of “modifying the structure of the tax”, as this option “had already been contemplated during the previous emergency.” The plan is to expedite the collection of funds to benefit communities hit by heavy rainfall, especially in the Córdoba department.
Emergency Decree Suspended by Constitutional Court
The debate on taxing gambling activities comes at a time when there has been a major legal development. Two weeks ago, the Corte Constitucional de Colombia announced the provisional suspension of the economic and social emergency decree “while a final decision is being issued.”
The emergency decree was issued by President Gustavo Petro as a means to mobilize about COP 16.3 trillion to finalize the 2026 national budget. This was after Congress rejected a tax reform plan in early December.
Under Decree 1390, the government had the ability to “issue decrees with the force of law” within a 30-day period. These rights also included the possibility of implementing new taxes if needed.
But after the provisional suspension by the Constitutional Court, the decree related to wealth, liquor, and gambling taxes “will not produce effects while a final ruling is issued”, as stated in an official press release.
Impact on the Gambling Industry
One of the most important aspects of the suspended decree is the implementation of a 19% VAT on online games of chance. This tax will affect both local and international gambling operators and will be based on gross gaming revenue.
With the court’s ruling, this VAT provision has also been suspended and cannot be enforced until a final constitutional review is conducted.
This current situation brings uncertainty to the regulated gambling industry in Colombia, especially to online gambling operators who are preparing for possible changes in the industry’s structure due to taxes. Meanwhile, the government is also looking for other ways to generate funds for emergency and climate-related recovery programs.
Source: SBC Noticias
