Palma proposes parafiscal contribution for electric sector in tax reform

Energy Minister Edwin Palma sent a letter to Finance Minister Germán Ávila proposing a parafiscal contribution from the electric sector to be included in the tax reform.

The contribution would target payment of sector debts and would apply to companies engaged in generation, transmission, distribution and commercialization of electricity in the National Interconnected System. Palma described the measure as a transitory levy with a specific destination.

The proposal draws from a December 2025 decree that set a 2.5% charge on profits before taxes for fiscal year 2025. That levy was to be paid in two installments, with the first at 1.25% due on February 2.

In the letter, Palma requested that the draft article be considered by the Finance Ministry for the bill to be presented to Congress.

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Illustration of Congress approving the national reconstruction bill with tax reforms.
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The National Reconstruction project concluded its legislative process this week, incorporating corporate tax cuts, reintegration and a tax invariability clause.

The government of President Gustavo Petro submitted a new tax reform bill to Congress aimed at collecting 21.9 trillion pesos in 2027.

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Designated Finance Minister Miguel Gómez announced that Abelardo de la Espriella's government will prioritize a fiscal adjustment plan and submit a tax reform in September. Gómez called for archiving the bill filed by Gustavo Petro's administration.

Finance Minister Jorge Quiroz announced on Friday the withdrawal of indications reducing the corporate tax from 23% to 22%. The step aims to honor a deal reached with PPD senators, though the party declares the agreement fallen.

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