Businessmen have described as a "disguised tax" the decree by the Sanchez Ceren administration which adds a fee for social investment on to the energy rate .
The decree states that the new charge of 13% within the tariff will begin on July 15 and notes that"... the charge for social investment will be part of the fees in the system, which are transferred to the entire electricity demand in the different markets managed by the Transactions Unit and will be calculated quarterly as a dollar value per megawatt hour, equal to 13% of the value of the average price of Transferable Energy rates corresponding to the previous quarter ".
In an attempt to increase tax revenues, the executive announced that it is now considering taxing the distribution of soft drinks such as juices, isotonics and sodas.
It is expected that in the first week of February analysis will be presented of modifications to the tax on the distribution of beverages and on tobacco and tobacco products, with the aim of obtaining more resources to finance the national budget for this year.
The World Bank cites weak economic growth, low tax collection and low public investment as the factors affecting productivity and preventing greater economic development from being achieved.
Less taxes and consequently poor tax collection, coupled with limited public spending, are preventing Guatemala from achieving a better level of socioeconomic development, despite having achieved timid growth rates of GDP in recent years.
The Association of Banks of Panama has filed a lawsuit alleging that the concept of the tax retention agent is unconstitutional.
The Association of Banks of Panama (ABP) believes that the agreement which empowers the Panamanian municipality to select companies that bill more than $5 million as tax retention agents is unconstitutional. The agreement regulated in 2013 turns firms in auditors and collectors of tax for the municipal coffers.
Representatives from the government and employers reached an agreement to reform the rule which requires a bond deposit of between $3000 and $75 000 on stores that sell alcoholic beverages.
Prensa.com reports that "members of the National Association of Bars, Pubs and Businesses engaged in the sale of liquor, and representatives from the Ministry of Commerce and Industry (Mici) agreed to eliminate the performance bond established in Act No. 2 February 2013 ". According to Virgilio Sousa, national director of Commerce at the Mici, the proposal is starting to be drawn up by the legal department of the ministry and will be presented in the next few days before the Cabinet.
The tax system in Costa Rica is chaotic, complex, unfair, disproportionate, inequitable, and ineffective, which affects development and competitiveness, encouraging tax evasion and smuggling.
In an analysis piece in Elfinancierocr.com items, Danilo Villalta notes the need for comprehensive reform of the Costa Rican tax system, starting with a "strategic planning process" to approve a plan "agreed with the various political forces, and subsequently according to that plan, develop bills with the participation of specialists in order to have legislation that is clear, transparent, simple and easy to apply by the administrator and the taxpayer. "
In the first 10 months of 2011, tax revenues reached $4.723 million, 18.4% higher than in the same period in 2010.
The increase in revenue is due in part to a significant increase in the collection of Income Tax (32.9%).
"Pablo Urrutia, analyst from the Association for Research and Social Studies (ASIES in Spanish), thought that in addition to these figures and percentages, it would be necessary to look at other factors, such as prices and inflation. 'Even if more money has been collected, if you do not have better spending there is no real benefit, despite the fact that economic growth has increased’”, reports Siglo21.com.gt.
Chicas Vilchez & Ruiz is a professional finance and accounting firm providing Auditing, Consulting, Outsourcing, and Tax services in El Salvador, Central America and the United States.
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