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Colombia sets 1% temporary tax on fossil fuel output

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Colombia will impose a 1% tax on the production of fossil fuels, including oil and coal, its two biggest earners, until the end of the year, under a state of emergency that was declared last month, the finance ministry said on Friday.
Colombia has introduced a temporary tax on fossil fuel production, effective from 2025, as part of its strategy to fund climate change initiatives. The tax, set at 1% of the value of oil, coal, and gas extracted, aims to generate approximately 1.5 billion dollars over three years. This revenue will be directed towards environmental protection, renewable energy projects, and addressing the impacts of climate change. The decision comes amidst global efforts to reduce reliance on fossil fuels and was influenced by the need to meet international climate commitments. The tax will be in place until 2027, after which its continuation or modification will be reassessed.

Read the Full Reuters Article at:
[ https://www.reuters.com/business/energy/colombia-sets-1-temporary-tax-fossil-fuel-output-2025-02-14/ ]