Seventeen governors rebel against Petro's liquor tax decree

Seventeen Colombian governors, led by those of Antioquia and Valle del Cauca, have chosen to disobey a decree from Gustavo Petro's government that alters the liquor tax structure. They argue the decree causes irreparable damage to departmental funding for health and education. This action is backed by the Constitution for instances of poor government administration.

Columnist Gustavo Álvarez Gardeazábal, in his article published on January 22, 2026, portrays how President Gustavo Petro's administration is 'disbinding' Colombia through decisions that dismantle key national structures. The text highlights the government's administrative incapacity, prioritizing past political vendettas over effective governance.

A prime example is the dismantling of Health Promoting Entities (EPS), which the author says the government hates due to ideology or whim. He critiques a failed economic theory linked to the president, likening it to a domino effect that would collapse the health system by toppling one piece, sarcastically suggesting it deserves the Nobel Prize in Economics under the term 'chuchuchu'.

Another issue is the decree on liquors, described as vices or provocations, which have historically pivoted departmental funding for public health and education. This aggressive decree, copied from a congressional bill that was rejected, has caused the collapse of that fragile structure.

In response, 17 governors, led by those of Antioquia and Valle, have clung to the Constitution and chosen to disobey the decree until the Court rules on its illegality. Álvarez Gardeazábal views this as a justified rebellion, invoking the constitutional escape valve for times of poor governance, marking the 'disbinding' at its highest degree.

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Petro-Uribe Clash Intensifies Over Colombia's Economic Emergency Decree

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Following the December 19 announcement of an economic emergency and business groups' petitions for suspension, President Gustavo Petro issued the decree on December 25. Álvaro Uribe's Centro Democrático filed a tutela claiming it unconstitutional, but the Constitutional Court delayed review until January 13 amid judicial vacancy, sparking a public feud.

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.

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President Gustavo Petro insisted that the downfall of the economic emergency decree in the Constitutional Court will bankrupt the Colombian state, with about 4 trillion pesos missing from the budget. He criticized the previous government for handing billions of public funds to the country's richest without return. He also anticipated a fruitful meeting with Donald Trump in Washington.

President Gustavo Petro defended the placement of US$4.95 billion in bonds, Colombia's largest issuance ever, as a measure to lower the current debt costs. He linked this to the economic emergency decree, warning that its annulment by the Constitutional Court would raise borrowing expenses again.

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Following last week's announcement of plans for an economic emergency decree, Interior Minister Armando Benedetti confirmed its signing by all cabinet members on December 18 and filing the next day. The measure addresses a 16.3 trillion peso shortfall in the 2026 budget after tax reform's failure, targeting high-income sectors to secure public debt payments and avoid rising country risk.

Constitutional Court Magistrate Carlos Camargo filed a ponencia to provisionally strike down the economic emergency decree issued by the Government on December 22, 2025. He argues that it fails to meet constitutional requirements for a sudden and unforeseeable crisis, aiming to prevent irreversible effects while the case is decided on merits. Business groups like Fenalco and the National Business Council back this view, while President Gustavo Petro warns of a fiscal crisis if suspended.

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The Colombian government issued several decrees under the Economic, Social and Ecological Emergency declared due to floods in eight departments, including a 16% tax on digital bets and an $8.6 trillion addition to the 2026 budget. These measures aim to fund aid for victims and revive the local economy. Critics like Andi and AmCham question their impact on investment.

 

 

 

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