A bill originating from the executive branch proposes stimulating the purchase of equipment and agricultural materials by reducing sales tax from 15% to 3%.
Tuesday, August 23, 2016
The bill on Agrifood submitted to Congress proposes a series of measures to stimulate the agricultural sector, including a reduction from 15% to 3% in the sales tax on the purchase of machinery and other materials.
President Hernandez explained that "'...3 percent, at the request of the producers themselves, would be incorporated, if so decided by the National Congress, into the Firsa Trust Fund, so that this 3 percent goes directly towards promoting special funding to sectors that have access to this financing'."
According to a statement issued by the Presidency,"...materials and equipment that have zero tax will always keep this benefit. "
"...President Hernandez announced that 'also in process is a new financing system, as well as the strategic alliance between the Firsa, Banhprovi and Banadesa funds. "He also said that they will soon take to Congress a new system of special insurance for the agrofood division.'There is also something else we have been working on, which is technical assistance'. "
¿Busca soluciones de inteligencia comercial para su empresa?
Interested in detailed data on Central America's agriculture industry?
Contact us:
Your message has been sent. We will contact you shortly.
The Guatemalan Chamber of Commerce opposes the special tax scheme for agricultural activity approved by Congress, arguing that it is unconstitutional and violates the principles of tax equity.
The new fiscal regime for agriculture, approved last September 24 by the deputies of the Congress of the Republic, has been surrounded by controversy, as from the beginning the chambers of industry and commerce expressed their opposition.
The Guatemalan Congress approved a bill that contemplates the creation of a special tax regime for agricultural activity.
Although this bill was involved in controversy days ago, as the chambers of industry and commerce expressed their opposition, Congress decided to approve the bill. See full bill.
Reducing the income tax exemption threshold for individuals, increasing property taxes and raising VAT from 13% to 15% is part of the institution's proposal, arguing that in the country "the tax/GDP ratio is relatively low."
In the medium term, the positive effects on confidence and progress of structural reforms, including those related to OECD membership, should reduce risk premia and stimulate investment, boosting growth to 3.25%, reported the International Monetary Fund (IMF).
In light of the failure of the first draft of the tax reform, the Government has announced more taxes, the end of exemptions on luxury goods and tax on remitted abroad.
After the defeat of the so-called 'Solidarity Tax Act' in the country's Supreme Court, the Government has been forced to re-do their fiscal and tax plans and launch a new legal package in Parliament.
×
ok
6931Government Procurement Opportunities in the region
español
6931
