Colombia Imposes New Taxes Amid State of Emergency

Colombia has announced a 1% tax on fossil fuel production and a 19% sales tax on online gambling to raise funds amid a state of emergency. These measures aim to collect about $721 million, with potential plans for permanence. The emergency was declared following regional attacks blamed on the ELN, which denies targeting civilians.

In a bid to increase fiscal resources, Colombia will temporarily impose a 1% tax on its key fossil fuel productions, namely oil and coal, according to the finance ministry's recent statement. The country also introduces a 19% sales tax on online gambling.

The government declared a state of emergency for the Catatumbo region, citing escalated attacks allegedly perpetrated by rebels of the National Liberation Army (ELN) against ex-FARC members and community leaders. These fiscal measures are intended to channel funds into emergency relief efforts.

Finance Minister Diego Guevara hopes the tax measures, aiming to generate 3 trillion pesos (about $721 million), could become permanent via forthcoming tax reforms slated for congressional deliberation. Despite accusations, the ELN has denied any attack on civilians.

(With inputs from agencies.)