Background on the Ministry of Commerce, Industry, and Tourism
The Ministry of Commerce, Industry, and Tourism in Colombia has recently published a draft decree aiming to increase the tariff on imported gasoline and diesel vehicles and motorcycles. This move is part of Colombia’s National Reindustrialization Policy, which seeks to diversify and enhance the country’s productive matrix through strengthening production vocations and quality standards.
Tariff Increase Details
The proposed tariff increase aims to boost domestic industries by raising the existing tariffs on specific vehicle categories. The tariff for passenger cars (gasoline or diesel) will rise by 5 percentage points (pps) from the current 35% to 40%. Meanwhile, motorcycle tariffs will increase between 5 pps and 20 pps, as they currently range from 15% to 30%
“Currently, passenger cars with gasoline or diesel engines pay an ad valorem tariff around 35% of the CIF value,” explains William Barreto, an international trade specialist at the Military University of New Granada.
Affected Vehicle Categories
The tariff changes will impact the following vehicle categories, as outlined in subheading 8703:
- Piston engines, spark-ignition, up to 1,000 cm³
- Other passenger cars and automobiles designed primarily for person transportation with cylinder capacities between 1,000 and 2,500 cm³, with or without four-wheel drive
- Racing cars with cylinder capacities above 1,000 cm³ but below 1,500 cm³
Market Trends and Impact
According to the monthly vehicle sales report by the Colombian Association of Commerce (ANDI) and the National Federation of Commerce (FENALCO), the passenger vehicle commercial market has shown a positive upward trend. In October, 244 commercial passenger vehicles were sold, compared to 173 in the previous year—a 41% increase.
Similarly, in the first ten months of 2025, 1,836 units were sold compared to 1,391 during the same period in 2024.
Key Questions and Answers
- What is the purpose of this tariff increase? The Colombian government aims to support domestic industries by encouraging the production and consumption of locally manufactured vehicles, thus fostering economic growth and job creation.
- Which vehicle categories will be affected by the tariff increase? The tariff changes will impact piston engine vehicles (up to 1,000 cm³), other passenger cars and automobiles (1,000-2,500 cm³), and racing cars (over 1,000 cm³ but under 1,500 cm³).
- What are the current tariff rates for these vehicles? Passenger cars (gasoline or diesel) currently pay a 35% ad valorem tariff, while motorcycle tariffs range from 15% to 30%. The proposed increase will raise the car tariff to 40%, with motorcycle tariffs increasing between 5 pps and 20 pps.
- How has the commercial passenger vehicle market performed recently? The market has shown a positive trend, with a 41% increase in sales from October 2024 to October 2025, and a 36% rise in unit sales from January to October 2025 compared to the same period in 2024.
