Government Eliminates Digital Payment Tax, Boosting Cashless Transactions

The Colombian government under Gustavo Petro has removed a proposed 1.5% tax on digital payments, promoting the use of cashless transactions through platforms like Nequi and DaviPlata.

• The Ministry (government department) announced the withdrawal of a decree that would impose a 1.5% retention tax on digital wallet payments, enhancing cashless transaction appeal.
• Germán Ávila, the Minister of Finance, stated that the decision supports the growth of digital payment systems, including debit card transactions and electronic platforms like Bre-B.
• This move aligns with the objectives of the National Directorate of Taxes and Customs to simplify the tax structure and encourage the use of digital financial services.