Colombia has extended its 1pc surcharge on coal and crude exports to the full year 2025 — instead of the 90 days initially announced — to cover security costs, the country's new finance minister Diego Guevara said.
President Gustavo Petro issued the decree on 17 February, after granting himself emergency powers to restore order after violence worsened in a region bordering Venezuela in late January. The levy will also apply to the sale of coal and crude in the domestic market.
Petro had initially levied a 1pc surcharge on coal and crude exports for 90 days, with the aim of collecting up to 1.063 trillion pesos ($259mn), with about Ps259bn of that from crude and coal, to help cover security costs in the Catatumbo region.
But the full-year surcharge now means the government would collect at least Ps2 trillion, Guevara said in a televised interview.
The tax move could have severe consequences for the coal sector, possibly "bankrupting" many companies, and especially endangering smaller firms, Colombian coal federation president Carlos Cante said.
"This is part of a strategy to end the international competitiveness of Colombian coal and justify an accelerated energy transition model that does not serve Colombia," Cante said.
Fenalcarbon has warned that this new tax scheme could lead to "cascading taxation" that would not only affect large producers, but also small mining firms, which play a crucial role in regions such as La Guajira, Cesar and Norte de Santander.
The federation has also noted that this tax burden would compromise the viability of exports and the economic stability of the sector, affecting communities that depend on mining activity.
The Colombian mining association (ACM), said the new levy on the first sale and export of coal represents a new obstacle to the development of the sector. "This measure adds to an increasingly complex environment for the industry, which already has one of the highest royalty rates globally," ACM said.
Coal and oil companies in Colombia pay an income tax of 35pc, the highest in the OECD nations and sharply higher than the Latin American average of 28pc.
Colombia produced around 65mn t of steam coal, coking coal and metallurgical coke in 2024, accounting for 1.1pc of the country's gross domestic product. The new tax would reduce the competitiveness of Colombian coal, Fenalcarbon added.
Mining and hydrocarbons made up 47pc of the country's total exports in 2024 of about $50bn, according to figures from statistics department Dane.
