Tax Effects Due to Commotion in the Catatumbo Region

KEY ASPECTS

• On February 14th, 2025, the National Government issued Decree 0175, which established extraordinary tax measures to address the expenses of the General Budget of the Nation in response to the state of internal commotion decreed in the Catatumbo region.

• The internal commotion in Catatumbo is due to severe public order disturbances, such as the presence of armed groups, violence, forced displacements, and humanitarian crises, which affect essential  public services and may cause a food crisis.

• The National Government justifies the need for additional resources to face the internal commotion due to the insufficiency of local funds and the rigidity of the national budget.

• The adopted tax measures are: Value Added Tax (VAT) on Online Gambling, a special tax for Catatumbo, and an increase in the Stamp Tax rate from 0% to 1%.