The Chamber of Industry of Guatemala has submitted to the Constitutional Court an appeal against 14 items in the Laws of Taxation and Anti Evasion II.
"We see abuse in the functions that the SAT is acquiring in this new law," said Andres Castillo, president of the Chamber of Industry of Guatemala (CIG).
The actions are in addition to those raised weeks ago by MPs, businessmen and the chambers of Commerce and Agriculture, noted an article in Siglo21.com.gt.
Guild members of the Chamber of Industries are in favor of requesting a revision to the current tax reform which came into effect on January first.
The chamber’s president, Andres Castillo said that "some union members" have identified several deficiencies in the tax reform approved by Decree 10-2012, Tax Law Update. "Most of all there is a lack of information and lack of criteria for how authorities will be enforcing this law."
The mere announcement of reforms to the Constitution of Guatemala stops investment because of the removal of confidence and legal security for companies that might come to the country.
During a forum held by the Managers Association of Guatemala (AGG), concern was expressed over the constitutional reform process initiated by President Otto Perez Molina, and the excessive speed in the adoption of new standards such as the Customs and Tax Reform Act, whose implementation has created difficulties for companies.
Representatives from business associations are calling for discussion on drafting a project than it differs from the current one, which was approved in the Finance Committee of Congress.
The president of the Chamber of Commerce of Guatemala (GCC), Jorge Briz said that "we disagree with the suggested tax reform."
Briz believes that the reform proposed by the government "does not fit in with the reality in the country," and he added, "Guatemala needs fiscal reform and in depth restructuring, in the sense of simplifying taxes, tax rates have to be accessible , low and competitive worldwide", reports LaHora.com.gt.
The Chamber of Industries reiterated its strong rejection to the tax hike promoted by the Government.
Juan Antonio Busto, president of the CIG, the Guatemalan Chamber of Industries, argues the Government should foster economic recovery before proposing tax increases.
From Revistaindustria.com: "The bill would increase the Solidarity Tax ("Impuesto de Solidaridad") from 1% to 2%, and the Income Tax from 5% to 6% for taxpayers using monthly installments. Both increases would severely punish economic activity, at a time when the country needs to foster reactivation, argued business leaders"
The Chamber of Industries (CIG) asked Congress not to support the Government's tax reform bill.
CIG argues that the proposed tax hike will hamper economic recovery.
"During the meeting, CIG representatives described the situation of the country and why it is not a good time to increase taxes", reported Prensalibre.com.
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