Guatemala Needs More Tax Revenue

Federico Linares, CEO of G & T Continental, stated the need for fiscal reform.

Monday, February 14, 2011

Linares believes that current tax burden of around 10.5% of GDP is too low to support development of the country, adding that a tax reform is essential, though it seems difficult especially in an election year.

For now, he said, administrative measures can be taken to improve tax collection, like focusing on smuggling and tax evasion as well as lost VAT, which amounts to about $ 670 million.

The executive, former president of Banco de Guatemala, told Prensalibre.com that reform must be addressed without bias, considering all possibilities and that "we should try to simplify the system, keeping a low number of high performance taxes which are easy to collect.”

More on this topic

Guatemala: Tax Reforms in Place

March 2012

As of March 13th, the second exchange or sale of real estate will not pay VAT, just 3% stamp duty.

The Tax Update Law (Decree 10-2012), which entered into force on Tuesday 13th March, indicates that Value Added Tax (VAT) of 12% will be paid only on the first transaction of a property. Taxpayers will pay only 3% stamp duty.

Guatemala: Employers Criticize Tax Reform

February 2012

Representatives from business associations are calling for discussion on drafting a project than it differs from the current one, which was approved in the Finance Committee of Congress.

The president of the Chamber of Commerce of Guatemala (GCC), Jorge Briz said that "we disagree with the suggested tax reform."

Consultation on Tax Reform in Costa Rica

November 2010

The Finance Minister began talks with political groups trying to identify a project with as much support as possible prior to presentation.

Fernando Herrero, minister of finance, stated to Aaron Sequeira of Prensalibre.cr that the basics of the first draft of the proposed tax reform is progressiveness and simplicity, with the Value Added Tax (VAT) and Income Tax as the main sources of revenue.

Panama to Approve Tax Reform in 2009

May 2009

Among the main reforms that the tax system is looking to simplify is the elimination of alternative income tax calculation.

The new income tax rate that will be applied has yet to be defined.

Prensa.com reflected the statements of the new Economy and Finance Minister, Alberto Vallarino: "I am a believer in low taxes because they help in collection, especially in countries where we do not have a culture of paying taxes, which is a reality not only in Panama, but in every Latin American country."

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