Colombia sets 1% temporary tax on fossil fuel output

BOGOTA (Reuters) - 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.

The government will also impose a 19% sales tax on online gambling, the finance ministry said in a statement.

The government hopes the measures will raise 3 trillion pesos (about $721 million), Finance Minister Diego Guevara told Reuters. He has said in recent days he wants to make the measures permanent in a tax reform that will be sent to Congress.

Colombia's government declared a state of emergency for the Catatumbo region, in Norte de Santander, after accusing rebels from the leftist National Liberation Army (ELN) of targeting former members of the now-demobilised Revolutionary Armed Forces of Colombia (FARC) and civilian community leaders in a series of attacks.

The ELN has denied attacking civilians.

The taxes are needed to raise resources to address the emergency when the country faces fiscal constraints because of a lower tax take, the government said.

(Reporting by Nelson Bocanegra and Carlos Vargas; Writing by Oliver Griffin; editing by Barbara Lewis)

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