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 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. "

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