Colombia's Congress debates phased repeal of 4x1000 tax

Senators Christian Garcés and Angélica Guerra of the Centro Democrático have re‑introduced a bill to eliminate the 4 × 1000 financial transaction tax (GMF) that was created during the Andrés Pastrana administration. The proposal calls for a gradual reduction of the levy over seven years, keeping the rate at its current level in 2027 and then lowering it by 0.5 points per thousand each year until it reaches zero in 2034.

The legislators say the measure would ease the tax burden on Colombian households, boost purchasing power, stimulate investment and improve the country’s competitiveness. The same legislative package also seeks to institutionalise up to three “Day without VAT” events per year as a permanent fiscal policy. The discussion of both initiatives is set to begin in the coming days in the Chamber of Representatives.