Abelardo De La Espriella was inaugurated as Colombia’s new president on Friday and immediately moved to dismantle key pillars of his predecessor’s economic legacy, announcing the abolition of the wealth tax and the re-authorization of hydraulic fracturing.
In his inaugural address, De La Espriella declared that Colombia “must stop punishing those who invest and generate wealth,” framing the elimination of the impuesto al patrimonio as the centerpiece of a structural tax reform. The wealth tax, introduced under the previous government through a state of economic emergency decree in late 2025, imposed progressive rates of up to 5 percent on assets exceeding roughly $13 million.
Alongside the tax pledge, the new president said he would sign a decree freezing public spending “in the coming hours,” called the recovery of state oil company Ecopetrol an absolute priority, and confirmed that Colombia would re-authorize fracking under what he described as “responsible and sustainable technical standards.”
De La Espriella also announced plans to compile a formal list of designated narcoterrorist groups and the construction of mega-prisons, signaling a hardline shift on security policy. The announcements came as part of a rapid-fire series of executive moves on his first full day in office.
The wealth tax abolition faces a significant legal hurdle. Under Colombian law, eliminating the levy requires a structural tax reform passed by Congress, and no such bill has been introduced. Analysts noted that De La Espriella’s statements are policy announcements, not law, and the existing tax provisions remain in force until legislators act.
The reversal on fracking marks a dramatic departure from the previous administration, which had moved to ban the practice entirely. Colombia’s push into shale extraction has drawn both interest from energy investors and opposition from environmental groups and indigenous communities concerned about water contamination and seismic risk.
The new government’s economic agenda is being closely watched by international markets and foreign investors, particularly those affected by the wealth tax’s reach into worldwide assets of foreign tax residents. The decree freezing public spending is expected to take effect immediately, though its scope and enforcement mechanisms remain to be detailed.
The political transition comes as Colombia navigates ongoing challenges including fiscal deficits, the aftermath of a rejected tax reform under the prior government, and persistent security concerns linked to armed groups operating in rural areas. De La Espriella’s rapid policy moves suggest a government determined to establish its economic direction from day one.
Sources: Rio Times, Rio Times Daily Guide, Bolder Group
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