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.

Colombia's Health Ministry backs the VAT increase on alcohol and tobacco from 5% to 19%, arguing it will protect public health by curbing consumption and related deaths. However, up to 20 governors oppose it, claiming the measure violates territorial autonomy and cuts revenues for health and education. The government has called a meeting for January 19, 2026, in Bogotá to clarify Decree 1474 of 2025.

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Finance Minister Germán Ávila announced the declaration of an economic emergency following the failure of the tax reform, aiming to fund $16 trillion for the 2026 National General Budget. The draft decree includes taxes on assets, alcohol, cigarettes, and a special levy on hydrocarbons and coal. Business guilds such as Andi, ACM, and ACP question its constitutionality and effectiveness.

President Gustavo Petro pushes for repatriating about 250 trillion pesos invested abroad by pension funds, criticizing the economic model since the 1990s. The proposal has reignited debates with figures like Enrique Peñalosa and raised technical warnings from experts like Mónica Higuera. Petro argues that workers' savings should create local jobs rather than benefiting foreign economies.

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At the close of 2025, Colombian columnists highlight distrust, governmental ineffectiveness, and an economic crisis worsened by debts and taxes as the main threats to the country. While criticizing official lies and poor fiscal management, they call for building trust, social commitment, and education for a hopeful future.

 

 

 

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