The accusations were made by some MPs who met with the acting head of the Superintendency of Tax Administration (SAT), Omar Franco and Deputy Minister of Finance Durval Carias. During the meeting, the congressmen noted that the initiative "contains 27 articles that attempt to reform the Tax Update Act, in which there are modifications to reduce and exempt from taxes as well as formal errors in the writing", reported Lahora.com.gt.

According to Deputy Carlos Barreda, in the changes to Article 21 of the Law on Income Tax there are privileges, as it aims to make a reduction to Income Tax (ISR by its initials in Spanish) according to total costs arising from the free services that companies give to employees, such as clinics, schools and homes. The current law only allows them to deduct 50% of those expenses. "

According to Barreda this reduction would cost the Treasury about $38 million. One of the sectors which would benefit the most is sugar mills as they provide these kind of free services.

Source: lahora.com.gt

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