The Finance Ministry filed on July 21, 2026 the fifth tax reform bill of President Gustavo Petro's government. The proposal seeks to widen the wealth tax base and adjust VAT rates on fuels, hybrid vehicles and tourist services. The bill awaits debate in Congress.
The bill lowers the wealth tax threshold from 72,000 to 40,000 UVT, equivalent to 2.223 billion pesos starting in 2027. This change would require 105,332 taxpayers to pay the levy.
The proposal eliminates the additional 72 UVT deduction per dependent introduced in the 2022 reform. The tax authority DIAN estimates the measure would raise revenue by 1.4 trillion pesos by 2028.
On VAT, the reform plans to raise the rate on gasoline and diesel gradually to 19 percent from 2028. It also seeks to apply the 19 percent rate to hybrid vehicles and remove the VAT exemption for tourist services provided to non-residents.
