Guatemala: More Taxes on Liquor and Cigarettes

The Executive is considering increasing taxes on cigarettes and alcoholic beverages as an option for balancing the 2015 budget.

Tuesday, January 6, 2015

With the provisional suspension of the tax on telephone lines the Guatemalan government is left with a deficit $237 million, approximately, which is why it is looking at bridging the gap using new taxes on liquor and cigarettes, as the main alternative.

President Otto Perez Molina, told S21.com.gt that "... There are several ideas, but liquor and cigarettes could be [the solution]; There are caucuses in Congress who have suggested it, but we will have to analyze it. We are going to study this option and then we will publicize [the decision]. "

Meanwhile Javier Zepeda, executive director of the Chamber of Industry of Guatemala, added "... It is a great mistake to think of taxes on specific products because this discourages investment, when combating tax evasion and smuggling are important. We want more formality in a country where there is so much informality, we have to encourage formality and generate a tax base. "



More on this topic

A Pack of Cigarettes increases by $0.80

May 2012

A tax of 4 cents per cigarette has entered into force in Costa Rica, which was been passed onto consumers by the tobacco companies.

On Monday companies raised the price of a pack of cigarettes by 400 colones ($0.80), thereby passing on the tax of 20 ¢ per cigarette imposed on them under Control of Tobacco Act.

Guatemala: New Tabaco Tax

May 2011

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.

Guatemala: British American Tobacco Willing to Dialogue

October 2010

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."

El Salvador Would Increase Taxes to Cigars and Beverages

September 2009

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: "...

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