VAT increase in the Fiscal Rescue Bill would push inflation up in 2027 and 2028

FinanceColombiaEl ColombianoNov 3, 2026, 10:53 AMAI summary

According to the explanatory memorandum of the Economic Rescue Bill, the tax changes could add up to 0.6 percentage points to inflation in 2027 and 1.4 points in 2028, driven by consumption taxes, VAT adjustments and health levies. The Ministry of Finance argues the pressure would be temporary and that from 2029 fiscal consolidation would help lower inflation, with an average effect of 0.4 points per year between 2027 and 2030.

In 40 seconds

The Finance Ministry estimates up to 0.6 additional percentage points of inflation in 2027; the indicator would reach 5.6% at the end of that year.
In 2028 the pressure would be up to 1.4 points, due to the removal of benefits and the broadening of the VAT base.
The 5% preferential rate for certain processed goods would rise to 19% in 2028.

Read the full story at El Colombiano

IASummary generated by artificial intelligence from a story by El Colombiano. It may contain errors: the original source prevails.

IVA
inflación
reforma tributaria
Hacienda
Colombia

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VAT increase in the Fiscal Rescue Bill would push inflation up in 2027 and 2028

In 40 seconds

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Keep reading

IMF backs economic rescue bill as Banco de la República calls for rigor in its review

Parks and attractions in Colombia generated US$1.095 billion in 2024, according to IAAPA

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