The Colombian government, led by President Gustavo Petro, announced legal actions against 17 governors refusing to apply the economic emergency decree, as the Constitutional Court reviews its legality. This clash creates uncertainty over collected taxes, such as the 19% VAT on liquors, and potential refunds if the measure is ruled unconstitutional. Experts warn that criminal penalties are unlikely and highlight the complexity of reimbursements.
President Gustavo Petro's economic emergency declaration has sparked an institutional conflict in Colombia. As the Constitutional Court examines the decree's legality, including the validity of ministerial signatures, 17 governors announced they will not implement measures like the expanded 19% VAT on liquors and the consumption tax. Acting Justice Minister Andrés Idárraga Franco reiterated that the constitutional order is mandatory and that the government will act through legal channels to ensure compliance, without allowing unilateral interpretations by territorial authorities.
Magistrate Carlos Camargo took charge of the case and ordered technical proofs, such as opinions from former Finance Ministers and verification of ex-Minister Irene Vélez's assignment, whose signature is questioned for failing the constitutional requirement of all ministers' participation. Constitutional lawyer Juan Manuel Charry explained that refunding paid taxes would be 'very difficult in practice' due to small amounts and cumbersome procedures before the DIAN.
Francisco Bernate, president of the College of Criminal Lawyers, clarified that Court rulings typically have future effects, protecting collected funds, and ruled out prevarication for governors, as they invoke the 'exception of unconstitutionality.' Former Magistrate José Gregorio Hernández recalled the 1992 case where refunds were ordered due to inequity. Hernando Herrera Mercado, from the Excellence in Justice Corporation, criticized the government's hypocrisy, having used similar mechanisms recently.
This tension jeopardizes fiscal revenue and highlights debates on using extraordinary powers instead of Congress. Meanwhile, taxpayers face financial uncertainty.
