January 30, 2025 3 min read

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Colombian Government Introduces Tax Measures on Gambling

The Colombian Finance Ministry estimates that this new tax could generate $500 million annually

The Colombian government has put into action a Value Added Tax (VAT) on online gambling. This move aims to bring in urgent funds to deal with the humanitarian crisis in Catatumbo

Petro’s Government Revives Online Betting Tax to Raise $500M

President Gustavo Petro declared a state of internal commotion giving the government temporary powers to tackle the emergency. This decision is part of that response. The Finance Ministry thinks this tax could bring in $500 million each year, reported El Pais. This money would give the state quick cash to fund its operations.

Finance Minister Diego Guevara clarified that this policy does not create a new tax. Instead, it does away with a benefit given in 2016, which had let online betting companies skip VAT payments. He stressed that the tax will apply right away to betting transactions, making sure the government collects money. This is particularly important given that funds must be secured within the 90-day emergency period, with the possibility of two extensions.

The plan to put a tax on online gambling was the first part of a financial reform package Congress turned down in late 2024. By putting it in place through the emergency decree, the government skips getting lawmakers’ approval saying that unusual conditions call for quick action. Guevara claims this change will not touch basic goods or hit middle-class buyers, instead calling it a contribution based on solidarity from a sector that has grown a lot in recent years.

Petro’s Government Bets on Gambling Tax to Fund Humanitarian Aid

The new tax is set to have a major influence on Colombia‘s online gambling sector, which has grown and contributes to the national economy. Still, the government thinks it is needed to fund essential services in Catatumbo where violence has forced over 39,000 people to leave their homes.

The Norte de Santander government has already started programs to help affected communities such as a public procurement plan to buy extra farm goods from struggling farmers and give them to shelters for displaced people.

Despite the rush to implement this measure, people are still wondering about its long-term effects. The government has not made it clear if the VAT on gambling will stick around after the emergency ends. The Constitutional Court will check if the state of internal commotion is legal, which could change the tax’s future.

Right now, the administration is working to get quick cash saying that gambling industry profits should help with national recovery. As the emergency plays out, people will keep a close eye on how well this tax handles the crisis — and what it might do to the industry.

Silvia has dabbled in all sorts of writing – from content writing for social media to movie scripts. She has a Bachelor's in Screenwriting and experience in marketing and producing documentary films. With her background as a customer support agent within the gambling industry, she brings valuable insight to the Gambling News writers’ team.

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