Colombia’s government announced a series of tax measures Friday designed to fund relief efforts following widespread flooding and related emergencies across the country. The move comes as 19 departments grapple with the aftermath of recent heavy rains, particularly in Córdoba and along the Caribbean coast.
The economic emergency decree, revealed during a cabinet meeting, will focus on increasing revenue through taxes primarily targeting large corporations, adjustments to the gaming sector, and mandated investments into the financial system. According to officials, the measures are expected to generate significant resources for assisting affected populations.
President Gustavo Petro explained that a key component of the fiscal strategy will be a temporary tax on the assets of the country’s wealthiest companies. “Only companies with assets exceeding $10 billion pesos will be required to pay,” Petro said, exempting micro, small, and medium-sized businesses from the levy.
Finance Minister Germán Ávila detailed the tax rates, stating that companies with net assets over $10 billion pesos will be subject to a 0.6% tax, while those exceeding $31 billion pesos will face a 1.2% rate. This range, equivalent to approximately 200,000 to 600,000 UVT, is expected to impact around 15,000 of the nation’s largest firms.
Petro emphasized that the tax aims to place the burden on substantial corporate capital, including banks and multinational corporations. He also pointed to past administrations implementing similar extraordinary taxes during times of public calamity, with rates reaching as high as 4.8%. Petro noted that large companies currently have an effective tax rate nearly 7% lower than other sectors, justifying the focus of the new measure.
In addition to the asset tax, the government is also considering adjustments to the corporate wealth tax and an increase in taxes on dividends from large companies. The decree will be reviewed by the Constitutional Court, according to reports.
Another central element of the economic emergency plan involves issuing decrees mandating investments from the financial system. This mechanism would require banks to allocate a percentage of public funds to specific productive sectors, both urban and rural, through financial instruments designed to channel credit to underserved activities. The UNGRD director, Carlos Carrillo, estimated that recovery efforts will require “billions of pesos,” describing the situation as “unprecedented.”
The government’s immediate goals are to provide humanitarian assistance kits – including food, hygiene products, and cooking supplies – to those displaced by the floods, as well as to restore damaged infrastructure and essential services. The move underscores the scale of the disaster and the government’s commitment to providing aid to affected communities.
