With the increase in exchange rate participation going from 0.65% to 0.70% the central bank will have more flexibility to intervene in the market.
The amendment means that the range within which the Central Bank of Guatemala may intervene by buying or selling dollars in the foreign exchange market will be larger, allowing for greater exchange rate volatility.
The regulation of the gaming industry could make the Treasury $132 million in two years.
The bill that was discussed in Congress would "create a monthly tax of 3% on the activity at betting parlors, casinos, video lottery, bingo or games of chance, which could be deducted from the taxable income tax (ISR ) by the taxpayer.
Bill being prepared that would legalize gaming rooms in order to collect taxes and control money laundering.
Games of chance are currently prohibited in Guatemala, with the exception of authorized lotteries. However, though prohibited, they are still played and represent approximately $125,000 worth of annual money laundering, says Rosa María de Frade, member of the Guatemalan Economy Committee according to an article by Suseth Casasola in Sigloxxi.com.
Analysis is underway to charge a specific tax on mobile telephony in 2010, either to all calls or just international ones.
A 0.1 Quetzal per minute tax (approximately $0.01), is one option being considered to increase fiscal revenues, within the National Emergency and Economic Recovery Program, know for its initials as PNERE.
Modifications to the Acquisitions Law and the state purchasing process, a new municipal tax code, rules for regulating insurance activity and a law proposal for mega projects are some of the laws pending approval.
The current free port zone laws have been around for twenty years, and they are in urgent need of being modernized.
Guatemala has a disadvantage among all the other countries in the region that offer free trade zones that are exempt from taxes, which is more attractive for foreign investment. They have tried to modernize this law, but they haven’t been able to.
Two legislative bills were submitted to Congress for a tax exemption on investment income.
Mariano Rayo, chairman of the Economy Committee in Congress, reported that the initiative has a favorable opinion from the Superintendent of Banks, but not from the Ministry of Public Finance or the Superintendent of Tax Administration.
An error in the final ratification text of the Free Trade Agreement with Colombia requires it to return to Congress for amendment.
Legislator Mariano Rayo, chairman of the Congressional Committee on Economy and Foreign Trade, told Prensalibre.com: "I, as chairman of the committee, accept there was an error and that we did not explicitly approve an exchange of notes in annex number three, which refers to the agricultural sector."
The Law of Alliances for Development would allow delegating the execution and administration of mega projects to private companies.
The objective, according to documents, is to allow the private sector to build and manage services that are traditionally handled by the public sector, such as the construction of highways, airports, ports, and other infrastructure.
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