The Ministry of Finance says it seeks to “equalize conditions” between cards and digital platforms, but thousands of Colombians fear a new blow to their pockets.
News Colombia.
The Ministry of Finance presented a draft decree that has set off alarms among users, entrepreneurs and small businesses in Colombia. The proposal seeks to apply a withholding at source of 1.5% on payments made through digital platformsincluding Bre-B and other e-walletsa change that, according to the Government, seeks “level the tax terrain” compared to payments made with credit or debit cards, which are already subject to this type of withholding.
An attempt to “equalize the rules”, according to the Government
The official document, which modifies the articles 1.3.2.1.2., 1.3.2.1.7. and 1.3.2.1.8. of Decree 1625 of 2016argues that currently there is a “disparate treatment” between the different payment methods.
While card transactions already have a 1.5% withholding, digital payments or electronic transfers are not yet subject to this charge.
For the Ministry, this difference generates an imbalance in taxation and reduces transparency in the system. Keep reading: Bre‑B is barely starting and there are already people warning about possible scams
Therefore, the measure seeks to All electronic operations – transfers, QR payments, small deposits and digital wallets – remain under the same fiscal conditions.
Bre-B in the crosshairs: the newly launched platform that could be affected
The measure comes at a key moment: Bre-Bthe interoperable digital payments system that began operating less than a month ago, could face difficulties if the decree is approved.
This platform, promoted as a step towards financial inclusion, allows payments and transfers between different entities without the need for banking intermediaries.
However, the 1.5% withholding could translate into higher costs for users and small businesseswho until now found in Bre-B an economic alternative to receive payments without high commissions, as specified by LR.
Several experts fear that this discourage the use of digital media and push informal traders to return to cash.
What the decree says and how it would be applied
The draft specifies that the basis for calculating withholding will not include taxes, fees or contributions other than VATas long as the payments correspond to official collections. Also excluded from the calculation the value of tips.
The measure, according to the text, does not seek to create a new taxbut rather adjust the application of the already existing withholding mechanism at source, in order to unify tax criteria.
However, for users the effect will be the same: a direct reduction in the value they receive for each payment.
Reactions: concern and criticism on all fronts
The advertisement has generated a wave of criticism on social networks and among business unions. Many consider that this decision contradicts the efforts of the Government itself to promote the digitalization of the economy.
Small merchants and entrepreneurs—who use digital wallets to avoid bank fees—warn that these types of measures can stop banking and affect the most vulnerable sectorsespecially in regions where digital platforms have opened new business opportunities.
The decree has not yet been signed, but The Ministry of Finance plans to do so in the coming daysin the midst of growing citizen discontent. If approved, the 1.5% charge will automatically be applied to each payment or transfer made electronically.
A debate beyond taxes
Behind the technical debate there is a deeper issue: confidence in the financial system and the transition to the digital economy.
Many Colombians feel that measures like this punish formalization and technological adoptioninstead of encouraging innovation and the use of secure platforms.
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