The new proposal would establish a tax of $0.09 (Q0, 69) per gram.
The initiative is supported by the Ministry of Health and organizations against the use of tabaco.
“If the proposal is accepted we would be able to raise about $66 million a year”, said the congresswoman Zury Rios.
"The new estimate is higher than the target proposed by the Superintendency of Tax Administration (SAT), a government initiative to raise Q356 million ($ 46.8 million) a year on restoration of the tax." states an article in Prensalibre.com
After a decision by the Constitutional Court, the tobacco company announced its willingness to dialogue.
The decision of the Constitutional Court in favor of an appeal by British American Tobacco, which alleged double taxation, will negatively impact tax revenues.
Sofia Oliva, manager of corporate affairs of the company, told Prensa Libre, "After being notified of the decision, we initiated contact with the government authorities to find long term solutions."
The Constitutional Court ruled in favor of an appeal by British American Tobacco, alleging double taxation.
The decision, by the highest court in Guatemala, repeals the second paragraph of Article 27 of the Tobacco Law which sets the basis for calculating the tax at no less than 46% of retail price.
The constitutional claim brought by the tobacco company noted that tax calculated on that basis, had "double taxation", since tobacco also pays value added tax.
The closure of duty-free stores in land based customs, hotels and shopping centers is thought to be the reason for the rise.
In February 2010, the Honduran Tax Revenue Service board of directors suspended the contracts of tax-free shopping stores after receiving complaints that these businesses were often linked with the illegal trade in cigarettes and alcoholic beverages.
BASS Americas, owned by British American Tobacco, will concentrate in Costa Rica the majority of its financial operations of the American continent.
It is located in the province of Heredia, and plans to expand its payroll to 200 employees. From there it manage the accounting and financial operations of all the countries of America, with the exception of U.S. and Brazil.
Within the tax reform, the Government is considering increasing taxes to alcoholic beverages and cigars.
This was communicated by Carlos Cáceres, Treasury Minister, who added that "...we are doing a review and will make a fair proposal, considering tax needs...".
Speaking on the topic, the president of brewer "La Constancia" (ILC) said that: "... the industry is expectant for the tax rate for the beer and liquor industry, and any fiscal changes implemented by the Government...".
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