Guatemala to promote "moderate" fiscal reform to raise tax revenues

The Government of Guatemala today announced its decision to bring in a "moderate" tax reform plan in hopes of achieving an 8-pont increase in tax revenues. The new revenues are to be used to combat poverty.

Wednesday, April 23, 2008

President Álvaro Colom said the proposal, which does not involve new taxes and which could be approved by Parliament this year, has as its goal "to attack poverty and strenghten the economic model" of the country.
"Everybody knows that (tax reform) is necessary, but the key is to awaken solidarity from those who could give more," Colom said during an official ceremony in the National Culture Palace.
Finance Minister Juan Alberto Fuentes said that with the changes, it will be possible for Guatemala to increase tax revenues from 12.4 per cent of GDP to 13.2 per cent by 2010. It would represent an increase of 3 billion quetzales (about 390 million dollars).

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