Colombia introduces taxes on online gambling to fund humanitarian efforts in Catatumbo

The Colombian government has announced plans to implement taxes on online gambling to address the humanitarian crisis in the Catatumbo region, where clashes between the National Liberation Army (ELN) and FARC dissidents have resulted in numerous deaths, displacements, and urgent humanitarian needs.. 

This decision comes in the wake of declaring a state of internal commotion in 16 municipalities of Norte de Santander department, including 11 in Catatumbo, due to escalating violence between guerrilla groups.

Finance Minister Diego Guevara revealed that the government intends to eliminate the Value Added Tax (VAT) exemption for online gambling, which has been in place since 2016. This measure aims to raise funds quickly to tackle the ongoing crisis.

"We need to find exceptional revenue sources that can be collected in this fiscal year. These are extraordinary resources for the duration of the state of commotion, which can extend up to 90 days," Guevara explained in an interview with Blu Radio.

The minister emphasized that this measure would not affect the middle class or basic consumer goods, calling it "a call for solidarity in a moment of national crisis." The government estimates this proposal could generate between 600 billion and 700 billion Colombian pesos, which, combined with the reallocation of royalty resources, would amount to 1 trillion pesos to address the Catatumbo emergency.

In response, the Colombian Federation of Gambling Entrepreneurs (Fecoljuegos) has requested a working group with the government to analyze the proposal and strengthen the sector. They aim to "jointly construct viable alternatives based on clear, transparent, and technical information".