Colombian President Gustavo Petro on Monday declared a state of economic emergency in order to impose new taxes after Congress rejected a fiscal reform bill meant to finance the 2026 budget, local media report.
With about eight months left before he leaves office, Colombia’s first left-wing president wants to give his government the power to enact special taxes and avoid what he calls an “imminent fiscal crisis.”
The exact scope of the emergency measures and which taxes will be introduced are not yet known. The emergency is declared for 30 days. Petro’s government aims to secure about $41 billion for the coming year’s budget.
According to the decree signed by Petro, Colombia is facing a “serious fiscal situation” that could lead to “a drastic adjustment” of state finances and affect the “well-being of the population.”
After the tax reform was rejected by the legislature, Petro wrote on social media that “the government will not let a crisis explode.”
In Spanish-language reports, it’s noted that the decree (No. 1390 of 2025) allows the government to establish or modify taxes as needed to address the situation.
