Constitutional Court Suspends Proposed Increase in Colombia Gambling Tax

Colombia’s Constitutional Court has ordered the provisional suspension of an economic emergency decree that introduces a 19% VAT on online gambling and betting services. The measure was issued under President Gustavo Petro’s administration through Legislative Decree 1390 of 22 December 2025.

This decision was adopted by a 6-2 majority of the court’s full chamber following a report prepared by magistrate Carlos Camargo. The ruling blocks implementation of the tax changes while the court carries out a full constitutional review. Eight magistrates participated in the session after court president Jorge Enrique Ibanez recused himself from proceedings.

Magistrate report highlights procedural and constitutional concerns

Camargo’s 86-page report identified several legal weaknesses justifying immediate intervention. According to the report, the emergency declaration contained procedural irregularities, including issues related to the signing of the administrative act.

The document also questioned whether the government had sufficiently justified the eight causes cited as grounds for invoking emergency powers. Camargo argued that allowing the decree to remain in force could create irreversible legal consequences before the court completes its oversight role.

The judges agreed that a precautionary suspension was necessary to prevent the consolidation of measures that might later be deemed unconstitutional.

Debate grows over use of emergency powers for tax reform

A central point of contention revolves around the effect of this decree on the country’s tax law. Camargo’s report warned that relying on emergency authority to implement tax reforms risks bypassing Congress and undermining democratic safeguards.

The court emphasised that the executive branch must demonstrate that any emergency action is necessary, proportionate, and directly linked to the crisis being addressed. 

This temporary suspension provides short term relief for Colombia’s regulated gambling sector. 

President Petro criticises ruling and defends fiscal strategy

President Petro responded publicly to the decision, arguing that blocking the decree could have wider economic consequences. In a message posted on X, he suggested that the suspension preserves tax advantages for wealthier sectors while shifting financial pressures onto society.

The president also linked the country’s economic challenges to interest rate policy set by Banco de la República and broader pressures within the energy market. Despite the political response, the Constitutional Court has not announced a timeline for its final judgment.

Until the ruling is delivered, the proposed VAT on online gambling remains on hold.