Minister of Finance, Juan Alberto Fuentes Knight, defended the fiscal modernization proposal and explained that if new taxes are not created and if the existing ones are not modified, they run the risk of leaving a "fiscal hole" for next year.
He said that, due to a reduced economic growth, the tax income was reduced from 12.3% to 12% for this year, and that for 2009 it could go down to 11.3% if the new initiatives being reviewed in Congress are not approved.

Source: prensalibre.com

More on this topic

Tax for first-time registration of vehicles in Guatemala

December 2008

The minister of Finance asked that the second initiative for fiscal reform be approved; said initiative includes the tax for the first-time registration of vehicles

"At times it seems that the interests of some 25 thousand people, who are the ones that buy new vehicles each year and who argue that they will be affected by the tax for first-time registration, are more important than the interests of a greater number of Guatemalans who will benefited from the resources that will generated," said the Minister, during the presentation of the Code of Ethics and Conduct for the Superintendence of the Tax Department.

Guatemala: Fiscal reform sent to Congress

August 2008

The Executive Power sent the first part of the fiscal modernization project to the Congress of the Republic without the proposal for the new income tax (IRS) and VAT retencions.

The modernization project will be implemented over a period of two years, and includes reforms in public expenditure, the creation of citizen's observatory, a new set of regulations for the administration of trusts, and a Vice-Minister of Transparency at the Treasury.

Vehicle imports rules unchanged in Guatemala

August 2008

The import of vehicles older than seven years (manufacture date) will continue as the Government has decided to drop this ban from its fiscal reform proposal.

The minister also stated that the tax base for the registration of used vehicles that are six years or older will remain fixed, while for those that are five years or newer, it will vary.

Guatemala's government presents a fiscal reform initiative

June 2008

Guatemala's finance ministry began this week to send out information aboiut its proposed fiscal reform agenda.

Measures proposed include a total rewrite of the Income Tax Law and changes to the law governing the value-added tax (IVA). The goal is to raise the load on taxpayers from 12 percent of Gross Domestic Product (GDP) to 13.2 percent.