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).

More on this topic

Álvaro Colom completes his first 100 days as Guatemala's President

April 2008

The transformation of Guatemala's economy and its participation in global markets meand the nation's businesses can no longer think of competitive advantage as being solely "the cheapest labor." It's also important to consider delivery times, quality requirements, adaptation to the specific needs of clients, and other factors.

This implies that companies need highly qualified, highly productive, and well paid workmen, and extremely flexible productive processes with the ability to innovate.

World Bank: 18-month economic crisis predicted for Central America

April 2008

The consequences in Central America of the turblance in the world economy will be a decline in exports and remissions, and higher unemployment.

Marcelo Giugale, the World Bank's director of the department of economics and poverty reduction for Latin America, said yesterday the most optimistic scenario forecast by World Bank analysts is for a "short, shallow crisis" that lasts about four quarters, of which one has already passed. But, he warned, 20 per cent of the World Bank's experts worry that a more pessimistic scenario could unfold, in which the crisis lasts a year and a half.

Guatemala seeks US$600 million in IADB funding

April 2008

Guatemala's government is negotiating two programs for a total of US$600 million with the Inter-American Development Bank (IADB), President Álvaro Colom said.

"We've been working with the IADB ever since we won the election, Colom told reporters after a lunch with IADB president Luis Alberto Moreno at the bank's Washington offices.

Guatemala: Economic Bulletin March 2012

March 2012

Fundesa has released its monthly report of the main indicators of the national economy: inflation, oil, IMAE, external sector, exports, foreign exchange, and tax revenue.

Inflation
In February 2012 the Consumer Price Index (CPI) showed a variation of 5.17%, 0.07 percentage points lower than in February last year (5.24%).

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