Colombia proposes VAT increase on hybrid vehicles to 19%

The Colombian tax authority (DIAN) has proposed increasing the VAT on hybrid vehicles from 5% to 19%, aiming to generate an estimated $300 billion in additional revenue. This proposal is part of a broader tax reform bill submitted by the Petro administration to Congress, which seeks to raise COP 21.9 trillion by 2027. The legislative outcome for both the specific VAT increase and the overall tax reform remains uncertain due to the current legislative composition and the administration's declining political capital.