Colombian Government Proposes Fees for Low-Value Digital Payments Amid Budget Crisis

Colombias government proposes fees for low-value digital payments, aiming to manage a budget crisis while addressing the use of Debit card and Credit card transactions.

• The Colombian government, led by Ministro de Economía, has introduced a proposal to impose fees on low-value digital payments to alleviate its budget crisis.
• This initiative affects transactions made through the Bre-B system, which was designed for cost-free, immediate payments for amounts below a certain threshold, promoting the use of Debit card.
• In addition to fees, the proposal includes a new Value-added tax on digital transactions, which could significantly impact natural person consumers and small businesses relying on electronic payments.