Colombia's Constitutional Court declared Legislative Decree 1474 of 2025 unconstitutional and ordered the Dian to return about $25 billion collected from emergency economic taxes in December. The Dian confirmed it will comply and implement measures within 30 days. Governors welcomed the ruling for easing regional finances.
Colombia's Constitutional Court, in its Sentence C-079 of 2026, unanimously (8-0) declared Legislative Decree 1474 of 2025 unconstitutional, which imposed tax measures during the December economic emergency declared by Decree 1390 of 2025. The ruling orders the Dian not to collect modified taxes from that period and to return those collected directly or indirectly, totaling about $25 billion.
Affected taxes include the 1% on first exports of coal and hydrocarbons ($23.8 billion) and additional VAT on liquor imports ($1.2 billion). The Court set a 30-day deadline for the Dian to create return mechanisms after notification and to preserve granted tax benefits.
"Faced with the orders issued by the Constitutional Court in Sentence C 079 of 2026, the entity will proceed to study [...] and adopt the necessary administrative and operational measures," the Dian stated in a release. It will timely inform taxpayers.
Governors like Dilian Francisca Toro of Valle del Cauca backed the ruling, stating that resources from the 19% VAT hike on liquors belong to departments for health and education. Others, such as Erasmo Zuleta of Córdoba, see it as a chance to reform the tax system.
