Colombia seeks 30 trillion‑peso tax reform to narrow fiscal deficit

The Colombian government warned that the country's public finances require a new tax reform capable of raising roughly 30 trillion pesos. Finance Minister Germán Ávila said the total deficit is projected to reach 5.3 % of GDP in 2026, above earlier estimates, and the goal is to bring it down to 4.5 % by 2027.

Ávila attributed the fiscal strain to rising debt‑service costs and the impact of the Fuel Price Stabilization Fund, which has cost around 80 trillion pesos in recent years. He noted that a previous structural tax reform failed to pass, and that congressional and judicial decisions blocked the entry of about 61.9 trillion pesos that could have strengthened state revenues. The administration is now pushing for a financing law, measures to increase tax collection, curb evasion and boost the capacity of the tax authority (DIAN).