The debate on Colombia's Financing Law in Congress was suspended until Tuesday due to lack of quorum in the Fourth Commission of the House of Representatives. The bill aims to raise $16.3 trillion to fund a 2026 budget of $546.9 trillion, but faces opposition and potential cuts if not approved. President Gustavo Petro warned of a possible default, while experts like Anif dismiss that risk.
On Tuesday, November 26, 2025, the joint economic commissions session in Colombia's Congress adjourned without progressing on the Financing Law debate due to lack of quorum in the Fourth Commission of the House of Representatives. The discussion was rescheduled for next Tuesday. The bill, led by the Ministry of Finance under acting Minister Carlos Betancourt, was filed with only 10 signatures out of 31 designated congress members, indicating low initial support.
The law aims to raise $16.3 trillion to complete the 2026 General National Budget (PGN), which would reach $546.9 trillion. If it sinks, the PGN would drop to $530.9 trillion, according to multiple reports. Key changes include eliminating VAT on fuels and keeping the income tax for natural persons unchanged, with impacts deferred until 2027. For tobacco, it proposes a 10% ad valorem tax on solid presentations and 30% on vapes, generating $1 trillion in 2026 and $1.36 trillion in 2030, per Betancourt.
A motion to archive the bill, presented by Representative Katherine Miranda, was rejected in the Third Commission of the House, allowing it to proceed for now to other bodies like the Senate's Economic Commission. The government coalition, represented by figures like Etna Tamara from Pacto Histórico and Olga Lucía Velásquez from the Green Party, defends the reform by highlighting improvements in macroeconomic indicators and criticizing the financial sector for 40% growth. In contrast, the opposition, with Congressman Carlos Meisel from Centro Democrático, argues it would impose excessive burdens, such as 65% on foreign companies' profits.
President Gustavo Petro ramped up pressure by warning of a 'possible default' if Congress, influenced by figures like Iván Cepeda, rejects the law that taxes only 'the mega-rich.' However, José Ignacio López, president of Anif, counters: 'The country is not at risk of default,' emphasizing that financing needs remain with or without the law, and recommending cuts over tax hikes that would hit strategic sectors like hydrocarbons and aviation via carbon taxes.
