Colombia’s tax agency, DIAN, faced challenges in September as they collected 28.2 trillion pesos (US$5.64 billion), which was 900 billion pesos more than last year. Despite a 3.2% increase, inflation impacted the gains.
Overall, tax collection for 2024 has been weak, with 206 trillion pesos (US$41.2 billion) collected from January to September, marking an 8.1% decrease compared to 2023. Former DIAN director Lisandro Junco noted that tax revenue is actually shrinking by 2.54% due to a 5.81% inflation rate.
Experts are concerned about Colombia’s fiscal rule, with estimates of a potential 12 trillion pesos (US$2.4 billion) deficit by year-end. Despite efforts by DIAN to boost collection, sales taxes were the main contributor in September, bringing in 10.08 trillion pesos (US$2.02 billion).
The struggle in tax collection not only raises economic growth concerns but also impacts the government’s ability to fund vital services and maintain fiscal stability.