The Constitutional Court of Guatemala has takem up a law suit filed by the Union of Importers of Machinery and suspended the collection of the ‘Iprima ‘ for agricultural and construction tractors.
The constitutional motion was filed stating that tractors are considered as working capital, and that the first registration tax (Iprima), which is set at 5%, is contrary to supporting the productivity established by the Constitution.
From January to August 2009, sales of goods dropped 5.8% when compared to the same period of 2008.
Data from the Tax Authority (SAT) shows that with the exception of January and April, monthly data has been always negative.
"Sales of services show a similar trend, albeit less steep...", reported Elperiodico.com.gt. "The Central Bank of Guatemala forecasts a drop of 1.5% in commerce, but this is considered too optimistic by businessmen".
Guatemalan purchases in China fell -24.9%, meanwhile sales decreased -54.9%, when comparing August 2007 to that of 2008.
The international financial crisis has already begun to affect the country's economy. Data from the Bank of Guatemala (Banguat) show that imports as well as exports have fallen in the first 8 months of this year.