A bill originating from the executive branch proposes stimulating the purchase of equipment and agricultural materials by reducing sales tax from 15% to 3%.
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.
A strategy focused on improving productive infrastructure, irrigation, roads, logistics and greater mechanization aims to increase exports by 40% by 2024.
From a statement issued by the Association of Exporters of Guatemala:
31 years ago, Guatemala exported coffee, bananas, cardamom and cotton for a total of US $507, then in 2015 it was recorded that the exportable supply has diversified into cardamom, sesame seeds, vegetables, flowers, crustaceans and shellfish, among other things, and is worth about US $3 billion, 104 million.Involved in this nationwide impact are, according to the National Survey of Living Conditions 2015 (ENCOVI, about 31% of workers, given that they engage in related agricultural activities, while in rural areas the percentage is 55%.
Producers are complaining about a lack of agility and excessive paperwork in the process to request tax exemptions for the purchase of equipment and farm machinery.
Agricultural producers argue that they can not easily access the exemptions for the purchase of equipment which is established in the recently passed Tax Act. Although it has been stated that within three months the necessary reforms will be made for the exemptions to given on products and not producers, the current requirements are delaying procedures and access to the incentive on the part of the producers.
The clearest example of how dangerous the concept of "food sovereignty" is, comes from the example of the famine that killed 14 million people in China during a failed attempt at self-sufficiency in rice production.
As pointed out in an editorial in Nacion.com, the National Development Plan put forward by the Solis administration, in the chapter "agricultural and rural development" involves a socialist vision of food production, now outdated all over the world, attempting even to raise to the rank of constitutional law the concept of food sovereignty.
Lafise bank announced it has $5 million to provide 7 year term loans with one year grace to producers in Leon and Chinandega.
After the meeting in Chinandega with producers and representatives from the financial institution solutions that fit the needs of the sector, the effects of climate change and fluctuations in international prices have been agreed in regards to production.
The agricultural sector is demanding a law that grants tax benefits and allows the use of leasing of machinery and equipment to improve competitiveness.
Instead of buying equipment and financing it with a bank, the agriculture sector is calling for a law to be approved to regulate and encourage the use of leasing, as a way to improve productivity by renting equipment and not borrowing to acquire it.
The government has announced that the national bank will offer loans at 7.25% interest rate for productive activities in the agricultural sector.
In addition to preferential loans to encourage the development of agriculture, depressed in recent months by the drought in Central America, the Honduran government has announced the creation of a $71 million trust fund to support the sector.
The National Agricultural Development Bank has funds available for food producers.
Jorge Handal, President of the Association of Farmers and Ranchers in Sula, reported that the National Bank for Agricultural Development (Banadesa) has $255 million available in loans for producers, which will be granted with an interest rate of 9%, lower than the market rate.
A new irrigation canal in the north, 34 kilometers long, will artificially irrigate some 8,600 hectares in the cantons of Cañas and Abangares allowing in order to promotoe the revival of production in this area and diversification. $15 million will be invested in the project and work is expected to start next March.
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METAGRO is a Guatemalan based manufacturer that provides high end solutions of agricultural transport equipment, we are focused on helping customers be more productive as they help to improve the quality of life for people around the world.
Operates in Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama
Phone: (502) 2383 2720 - (502) 5595 9953
As part of the Agritrade Platform, Guatemala will participate for the 27th time in PMA Fresh Summit, the most important international trade show and convention of fruits and vegetables in the United States, which will take place at Anaheim Convention Center, California from October 17th to 19th.
As a Holding Company we are interested in helping other companies to succeed. We do that by investing in other companies with capital and or professional help to allow them to grow in exchange for ownership.
Operates in Panama and Panama
Phone: (507) 7202158