The debate about the future of digital payments in Colombia remains heated after the announcement by the Ministry of Finance, which plans to tax them. This time it is the turn of the Anif Economic Studies Center, which warned if it is implemented A measure like this will lead to Bre-B’s future burning like bread, on the oven door.
In a recent analysis, these experts pointed out that the new decree prepared by the Ministry of Financeaimed at unifying the 1.5% withholding at source on electronic transfers and payments, could become a brake on financial inclusion and the digitalization of the country.
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Specifically, they assure that the measure, far from balancing the burdens between the different payment methods, introduces a bias that discourages the use of digital channels, just when the country was beginning to consolidate advances in formalization and traceability.
“The incentives end up being put in the wrong place,” says the analysis, warning that a higher tax on electronic transactions It will make the use of cash, a less secure and more difficult to trace, more attractive.
Small merchants would be the most affected by this measure.
Image from ChatGPT
It should be remembered that the decree in question seeks to equalize the retention rate between card payments and low-value electronic payments, such as transfers between accounts, operations via QR code and movements from digital wallets. However, Anif considers that the proposal directly affects the Bre-B payment system.
“This network, called to promote efficiency and inclusion, could see its adoption weakened if fiscal costs end up discouraging its use among businesses and consumers. Colombia still relies heavily on cash. More than 60% of the country’s workers work informally and millions of daily transactions continue to occur outside the formal financial system,” they noted.
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Based on this, Anif indicated that, in this context, any policy that raises the costs of digital payments would not only slow down innovation, but would widen the gaps of financial exclusion. Furthermore, they insist that fiscal policy cannot go against the technological transformation, as this ends up weakening the country’s competitiveness and reducing the efficiency of the financial system.
“Eliminating the 1.5% withholding, instead of expanding it, would have positive effects in the medium term. At first, the fiscal cost would be limited and in 2026 the State would stop receiving approximately $5,621 million, mainly from non-reporting small business transactions,” they highlighted.
The Treasury made it clear that for now this project is only in public consultation.
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However, they noted that this would change over time and “by 2028, the balance would become favorable, thanks to greater commercial dynamism and the progressive formalization of the sector. By 2034 the accumulated effect would be positive at $223,469 million at 2025 prices, a figure that shows that inclusion and efficiency generate more sustainable collection than short-term taxes.”
In this way, the analysis maintains that insisting on a policy that punishes transfers digital is equivalent to putting an obstacle in the way of the Bank of the Republic, which has been preparing the technological architecture of the Bre-B system for years to modernize the financial ecosystem.
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“The Issuer’s objective has been to allow immediate, interoperable and secure payments, replicating successful models from other countries in the region, such as Brazil’s Pix. However, the Executive’s fiscal decisions could undermine confidence in the system even before it reaches full implementation,” the report says.
Anif concludes that Colombia needs a tax policy that encourages innovation and formality, not penalizes them and that The boost to the digital economy must be understood as an investment and not as a tax loss.
The Treasury made it clear that for now this project is only in public consultation.
Image from ChatGPT
“Each formalized digital transaction is an open door to inclusion and transparency,” the analysis reiterates; in which it is clear that in a country where cash still dominates, maintaining incentives to digitize payments and expand financial access is a more effective bet than any temporary tax.
DANIEL HERNÁNDEZ NARANJO
Portfolio Journalist
