The draft bill offers VAT exemptions for hotels and renewable energy, vehicle tax penalty discounts, debt relief for low-income electricity users, and a traffic fine amnesty through 2024.
Colombia has published Bill No. 507 of 2025 in the Official Gazette to stimulate economic recovery through targeted tax benefits, fiscal incentives, and debt relief.
The bill proposes VAT exemptions for hotel services in municipalities with fewer than 200,000 inhabitants, renewable energy projects, and vehicle fleet renewals involving electric or EURO VI vehicles between June 2026 and December 2029.
It offers an 80% discount on vehicle tax penalties and an 80% reduction in interest for overdue debts up to 31 December 2024. It also provides temporary reductions in penalties and interest for omissions or corrections in tax, customs, and foreign exchange returns, with capped penalties of 15% for returns filed or corrected by specified deadlines in 2024.
Additional measures include administrative settlements for tax and customs disputes, reduced penalties in proceedings led by the Special Administrative Unit for Pension and Parafiscal Management (UGPP), and recognition of electricity debts as public debt for low-income households in strata 1, 2, and 3.
The draft also introduces non-mortgage loans for home improvements via the National Savings Fund and a traffic fine amnesty offering a 50% discount on principal and a full interest waiver for unpaid fines up to 31 December 2024, excluding offences involving alcohol or drugs.
