Colombia proposes gradual elimination of 4x1000 tax by 2030

A new bill presented in the Colombian Chamber of Representatives seeks the progressive elimination of the ‘4x1000’ tax by the year 2030. Originally created in 1998 as a temporary measure, the levy has existed for 28 years.

The legislative initiative aims to modify financial rules to gradually benefit citizens and aid household financial recovery while avoiding an abrupt fiscal impact that could destabilize the national economy. Proponents of the bill, including Representative Natalia Moreno of the Pacto Histórico, argue that the current tax structure creates distortions that affect the liquidity of low-income taxpayers. The proposal emphasizes protecting sectors with lower incomes who spend a larger proportion of their purchasing power on these financial costs.