Colombia proposes 19% VAT on gasoline and diesel starting 2028

The Colombian government’s new tax reform bill includes a plan to raise the value‑added tax on gasoline and diesel (ACPM) to a full 19 % by 2028. The increase will be phased in gradually, with the rate climbing step‑by‑step until the full levy is applied.

The measure is part of a broader effort to boost fiscal revenues, address a growing budget deficit and rising public debt, and fund social programmes. The Ministry of Finance argues that expanding tax sources is essential for maintaining state finances.

Economists warn that higher fuel taxes could lift retail fuel prices, increase logistics costs, and add upward pressure on inflation and household purchasing power, especially for transport‑dependent sectors and consumers.