Colombia's National Government is preparing a $16.3 trillion tax reform that includes significant increases in taxes on liquors, wines, and aperitifs. It proposes raising the VAT from 5% to 19% on these products, along with consumption tax hikes of up to 224%. Prolicores warns that this would boost the illegal market from 22% to 50%, impacting jobs and the regional economy.
The tax reform proposed by the Government aims to raise $16.3 trillion to fund the 2026 General National Budget. In the consumption tax category, for liquors and aperitifs, it sets an increase from $342 to $750 per degree of alcohol per 750 milliliters, equivalent to a 120% rise. For wines, the rate would go from $231 to $750 per degree of alcohol per 750 milliliters, representing a 224% increase.
Additionally, it proposes raising the VAT rate from 5% to 19% for liquors, wines, and aperitifs, a 14 percentage point increase. Colombia is the second country with the highest tax burden on liquors, and these levies account for 20% to 30% of tax revenues in regions like Antioquia, Cundinamarca, Caldas, Valle del Cauca, and Tolima. In departments such as Córdoba, Chocó, Vichada, and Sucre, they exceed 50% of total collections.
Prolicores, the sector's guild, has joined complaints against the measure. Its executive director, Catalina Lasso, stated: "Making legal liquor more expensive does not curb consumption; it pushes it toward illegality." She added that currently 22% of liquors in Colombia are illegal, and with the reform, it could reach 50%, boosting a market where adulterated liquor's profitability exceeds 300%. Lasso warned of impacts on logistics, importation, distribution, and commercialization, as well as over 70,000 direct jobs. "The tax reform that proposes increasing liquor taxes by up to 40% not only threatens the industry but thousands of Colombian families who depend on it," she noted.
The sector calls for a congress to defend its interests, emphasizing the need for fair rules that preserve legality, employment, and safety.