# Colombia tax reform and 4x1000 tax repeal proposals

> Live situation record from CLSTR: https://clstr.news/situations/colombia-tax-reform-proposals
> Updated: 2026-08-21T20:58:23.000Z. Sources: 12. Developments: 4.

In late July and early August 2026, the Centro Democrático party introduced legislative proposals in Colombia to reform key taxes. One initiative seeks to revive the “Día sin IVA” (Day without VAT) by allowing the government to decree up to three tax-free shopping events annually. This measure, which applies to both physical and e-commerce, prioritizes goods with at least 50% national content—such as clothing, appliances, and agricultural inputs—to stimulate consumer spending and support domestic producers.

Simultaneously, efforts have been made to phase out the 4x1000 financial transaction tax (GMF), a levy in place since 1998. While senators Christian Garcés and Angélica Guerra proposed a seven-year gradual reduction aiming for total repeal by 2034, a separate bill presented in the Chamber of Representatives by Representative Natalia Moreno of the Pacto Histórico seeks to achieve the progressive elimination of the tax by 2030. Proponents argue that the reform is necessary to ease the burden on low-income households, improve liquidity, and boost national competitiveness without causing abrupt fiscal instability.

## Timeline

### 2026-08-21: Colombia proposes gradual elimination of 4x1000 tax by 2030

A new bill in Colombia proposes the gradual elimination of the ‘4x1000’ tax by 2030 to improve household liquidity and support lower-income citizens.

2 sources. https://clstr.news/cluster/colombia-proposes-gradual-elimination-of-4x1000-tax-by-2030

### 2026-08-03: Colombia and Argentina unveil new VAT initiatives

Colombia proposes up to three annual tax‑free days prioritising domestic goods, while Argentina's Economy Minister Luis Caputo announces a $50 billion peso VAT refund scheme for SMEs.

5 sources. https://clstr.news/cluster/colombia-and-argentina-unveil-new-vat-initiatives

### 2026-08-01: Colombia's Congress debates phased repeal of 4x1000 tax

Colombian senators Garcés and Guerra propose a seven‑year phase‑out of the 4 × 1000 tax and permanent “Day without VAT” events, aiming to lower household tax burdens and spur investment.

3 sources. https://clstr.news/cluster/colombias-congress-debates-phased-repeal-of-4x1000-tax

### 2026-07-29: Colombia moves to restore tax‑free “Día sin IVA” with up to three annual sales days

Colombia's Centro Democrático has introduced a bill to bring back the “Día sin IVA”, allowing up to three tax‑free shopping days annually for selected goods, prioritising Colombian‑made products to spur demand.

2 sources. https://clstr.news/cluster/colombia-moves-to-restore-taxfree-da-sin-iva-with-up-to-three-annual-sales-days

---
Cite as: Colombia tax reform and 4x1000 tax repeal proposals. CLSTR, https://clstr.news/situations/colombia-tax-reform-proposals