The Special Tax for Catatumbo: A Threat to the Hydrocarbons Sector

Tax attorney Valentina Vergara authored an article for Lexir discussing Decree 175 of 2025, which implements a special tax for the Catatumbo region in Colombia. This tax levies a 1 percent charge on the extraction of hydrocarbons and coal at their initial sale or export. By adding to existing taxes and fees, the levy challenges Colombia's hydrocarbons sector, driving up production costs and affecting the industry's competitiveness. Ms. Vergara also argues that, without a solid technical and economic foundation, the measure could discourage investment and hinder economic growth in regions dependent on this activity.

READ: The Special Tax for Catatumbo: A Threat to the Hydrocarbons Sector