Colombia's January 2025 Tax Revenue Falls Short of Expectations Despite Increase

Colombia's tax authority, DIAN, reported that January 2025 tax revenues reached $32.83 trillion, an increase of $1.9 trillion compared to January 2024. However, this figure fell short of the government's $34.5 trillion projection for the month. The majority (88.6%) of the revenue came from domestic economic activity, with 11.4% from foreign trade taxes. The sales tax was the largest contributor, accounting for 36.6% of the total, followed by income tax withholding (35.2%) and customs revenue (11.4%). Despite the increase, economic analysts remain concerned about the fiscal deficit and its impact on the national budget, particularly regarding debt service, education, and healthcare. DIAN highlighted its control and oversight efforts, which generated an additional $4.23 trillion in revenue through collection management, persuasive collection, and suggested declarations. The agency aims for a total collection of $298.8 trillion in 2025, with strategies including strengthening the National Collection Center and increasing oversight of e-commerce.