A unified bloc of opposition political parties has filed a formal challenge before the Constitutional Court (TC), alleging that the 2026 National Budget Law is unconstitutional for failing to index the tax-free salary threshold for private-sector employees.
The coalition argues that by freezing the income tax brackets despite rising inflation, the government is effectively imposing a “hidden tax” on workers that by law would be protected through the automatic indexing of the tax-exempt base.
The constitutional “gatekeeper”
The success of this challenge rests on navigating the Constitutional Court’s increasingly strict criteria for review. Throughout early 2026, the TC has reinforced its role as a specialized protector of fundamental rights rather than a “super-Supreme Court.”
According to recent jurisprudence, including Sentencia TC/0082/26 (02 March 2026) and Sentencia TC/0110/26 (09 March 2026), the Court will only intervene if the following “Narrowed Scope” criteria are met:
• Direct violation: The failure to index must be proven as a direct breach of a fundamental right (e.g., the right to property or fair remuneration).
• Exhaustion of remedies: All other legal avenues, including the Supreme Court of Justice (SCJ), must be fully exhausted.
• Constitutional relevance: The matter must hold “special constitutional significance” for the interpretation of the Constitution.
The opposition maintains that the stagnation of tax-free wage levels is not a mere administrative oversight but a constitutional violation that warrants exceptional review. They argue that the “inflation tax” created by non-indexing disproportionately affects the middle and working classes.
By strictly adhering to Article 53 of Law 137-11, the TC is signaling that its resources are reserved for matters of constitutional supremacy. The Court’s stance aims to prevent it from being overwhelmed by ordinary disputes unless they reach a level of constitutional urgency.
Read more:
El Nacional
Constitutional Court
Constitutional Court
12 March 2026