Catatumbo's commotion taxes will run until December 31.

One of the questions that arose in the country after President Gustavo Petro announced the suspension of the state of internal unrest declared for Catatumbo and the issuance of the decree regulating this change in the rules of the game is what will happen to the taxes and tax movements that were imposed to finance the care of this region, affected by the armed conflict.

Well, the National Tax and Customs Directorate (DIAN) issued a statement this Friday, April 25, stating that the taxes imposed for this incident remain in place, as it was stated from the outset that they would remain in place until the end of the year, and that their continued existence is stipulated in accordance with national legislation.

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"The tax measures adopted in Decree 175 of 2025 , within the framework of the State of Internal Unrest in the Catatumbo region, remain in effect until December 31, 2025," they stated.

Regarding the reasons for their continued existence, the Dian explained that Decree 467 of 2025 only lifted the State of Internal Unrest in Catatumbo, and extended decrees 106, 107, 108, 117, 118, 120, 121, 134, 137, 180, and 433 of 2025 for 90 calendar days, without affecting the tax changes.

"Decree 175 of 2025 does not require an extension, as its Article 10 provides that the tax measures contained therein 'will be applicable once the fifth business day following its publication ends and until December 31, 2025,'" he added.

In this regard, he added that "the above is in accordance with literal 'l' of article 38 of Statutory Law 137 of 1994, which establishes that during states of internal unrest, the national government may impose fiscal or parafiscal contributions for a single fiscal year or for the duration of the unrest."

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Thus, the Dian made it clear that the measures adopted in Decree 175 were designed to be implemented throughout 2025, as these provisions allow for the fulfillment of the objectives that led to the Declaration of the state of emergency, guaranteeing the necessary funding, in accordance with the additional budget established in Decree 274 of 2025.

A high cost

It's worth remembering that a few weeks ago, a Crowe Co. report warned that this measure would generate a "domino effect" on the national economy and also impact inflation, generating at least six direct impacts on Colombians' pockets. This would also change the rules for four important productive sectors, resulting in a loss of competitiveness, a drop in investment, and further slowdowns.

According to this analysis, the measure, which seeks to raise approximately $3 billion pesos for Catatumbo, the metropolitan area of ​​Cúcuta, and the department of Cesar, imposes new temporary taxes on several key sectors of the economy, the effects of which have not been thoroughly reviewed.

Crowe Co.'s analysis warns that a 19% VAT on online games of chance could lead to higher costs for users, a drop in business revenue, increased evasion, and an administrative burden. According to the firm, a 10% increase in costs could reduce demand by between 12% and 20%. Furthermore, up to 30% of players could migrate to illegal or unregulated platforms in search of lower prices.

In the extractive sector, the new 1% excise tax on hydrocarbons and coal would increase operating costs by between 2.2% and 2.3% and discourage foreign investment by up to 15%. The measure would affect export revenues and increase tax evasion. A 5% to 8% drop in production, a reduction in employment in extractive regions, and a loss of international competitiveness of nearly 5% are also expected.

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The impact of the stamp duty would be broad: in construction, it would increase the tax burden by 1% to 1.5%, increasing financing costs by 20% to 30%, and reducing construction costs by up to 15%. In the financial system, it would increase the tax burden, reduce profitability, and discourage credit and foreign investment. Consequently, lower economic activity is expected in housing, infrastructure, and banking, directly affecting employment and consumption.

Finally, Crowe Co. warned that the measures in the internal unrest decree will have negative effects on Colombian households: they would increase the price of gasoline, diesel, and electricity in coal-producing regions, pushing up inflation. Interest rates on consumer and mortgage loans would also rise. The most affected regions would be those dependent on oil and coal, which could lead to forced migration to large cities, worsening poverty and putting pressure on public services.