For 30 days, the Government will have extraordinary powers to modify taxes and create new tax revenues.
News Colombia.
For 30 days, Colombia officially entered a State of Economic and Social Emergencya constitutional figure that allows the Government to adopt exceptional measures to face a serious crisis. He Decree 1390 of December 22, 2025 not only declares the emergency: it also enables profound changes in tax matterswith direct effects on the pockets of millions of Colombians.
The decision occurs in a context of fiscal deficitpressures on the national budget and lack of sufficient income to cover State obligations, especially in sectors such as health and social spending.
What exactly does the decree authorize?
The document establishes that, during the time of the emergency, the Government may issue legislative decrees with the force of lawwithout going through the ordinary procedure of Congress. These regulations must be aimed exclusively at averting the crisis and preventing its effects from spreading.
One of the most sensitive points is the tax. The decree itself states that, so transientthe Executive may:
- Create new taxes
- Modify existing taxes
- Adjust the State’s revenue structure
- Implement exceptional tax measures that will cease to apply at the end of the next tax period
That is, it is not just about budget cuts or rearrangements, but about direct changes in the tax burden.
The focus: raise more revenue
In the considering part of the decree it is made clear that the economic crisis is linked to the urgent need to obtain resources. Therefore, the measures adopted will be related to:
- Direct and indirect taxes
- Higher tax burden for natural and legal persons with greater taxable capacity
- Taxes aimed at correcting negative externalities, especially in environmental and public health issues
This opens the door to adjustments in taxes paid by citizens, companies and specific sectors of the economy.
How it could affect the pockets of Colombians
Although the decree does not set specific taxes, it does define the framework that makes them possible. In practice, the economic effects could be felt on several fronts:
In daily consumption, if indirect taxes are modified or expanded, the prices of goods and services could increase, especially affecting low- and middle-income households.
In personal income, if direct taxes are adjusted, some individuals could face greater discounts or additional payments, depending on their income level.
In companies, new taxes or fiscal increases can translate into higher operating costs, which in turn can be reflected in higher prices or lower investment.
In specific sectors, the decree leaves open the possibility of taxes directed at activities with an environmental or health impact, which could make certain products or services more expensive.
A temporary measure, but with real effects
The State of Emergency lasts 30 calendar daysbut the decrees issued during that time may have effects that extend beyond the emergency periodas long as they are within the constitutional framework.
Furthermore, once the emergency ends, the Congress must exercise political control about the decisions taken, and the Constitutional Court will review the legality of each decree.
A debate that is just beginning
Decree 1390 marks the beginning of a period of high economic and political tension. For Colombians, the central issue is not only the emergency itself, but how it will translate into taxes, costs of living and financial stability.
The decisions made in these weeks will be key for the economic direction of the country and for the confidence of citizens and markets. The emergency is declared; Now, the impact will depend on how those extraordinary powers are exercised.
