Bill Introduced in Colombia to Eliminate Tax on Ultra-Processed and Sugary Products

Representatives in Colombia's House, Daniel Briceño from the Democratic Center and Carol Borda from the National Salvation, have introduced a bill to eliminate a tax on sugary beverages and certain ultra-processed foods. This "healthy tax," which started in November 2023, was intended to discourage consumption of products linked to chronic diseases and ease pressure on the health system.

However, Briceño and Borda argue that the tax has not achieved the expected health outcomes and has instead imposed economic pressure on small businesses that sell the taxed products.

The tax applies to a wide range of foods, including cereals, cookies, sausages, ham, chorizo, powdered milk, and other basic household necessities. Briceño questioned the extent of the tax and claimed that a significant portion of the products bought by Colombian households would be affected. He emphasized that increasing taxes on people would not necessarily lead to healthier habits.

Borda stressed that people's autonomy should not be undermined by government intervention through taxes, questioning whether the State should use such measures to dictate what foods citizens consume. The bill's main concern is the financial impact on smaller commercial establishments. Borda noted that 67% of these businesses have been affected by the tax, and there is a risk of closure for some of them.

A survey conducted by the National Federation of Merchants (FENALCO) in 2025 found that 66.8% of shopkeepers reported a direct impact on their sales, with nearly 30% considering closing their businesses in 2024. FENALCO's president, Jaime Alberto Cabal, supported the bill, stating that it is crucial to protect small merchants and reduce the financial burden they face due to the tax. He also highlighted that these taxes disproportionately affect lower-income families and threaten their purchasing power.