Construction: Cement Costs Rise Due to Taxes

The construction union of Guatemala states that construction costs have increased by about 6% since the entry into force in January of a tax on the distribution of cement.

Friday, February 27, 2015

Since the start of the charging of a $0.66 tax per bag of cement distributed, representatives from cement companies have reported a drop in sales.

Pelayo Llarena, president of the Chamber of Construction, told Elperiodico.com.gt that "... This increase especially affects procurement capacity, since the increase is a higher percentage than the minimum down payment required by the FHA, which means families gets stung twice because of the price hike. This is despite the good economic conditions and lower prices in some raw materials which helps offset this. "

Meanwhile, Laura Castañeda spokeswoman for Cementos Progreso, said that "... Up to January 20 122,000 fewer bags of cement were sold than in the same period in 2014. She emphasized that the rise in the price of a bag was 233%, as it went from $0.20 to $0.66. "

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