Guatemala: Taxes on Telephony, Cement and Mining Eliminated

A declaration of unconstitutionality has been given to the $0.65 tax per bag of cement distributed, the same amount per phone or fixed line and 10% on royalties for mining.

Friday, September 18, 2015

The controversial tax was proposed by the Pérez Molina administration to finance part of the budget for 2015 and the intention was to raise about $2.6 billion.

The decision to declare them unconstitutional was taken unanimously by the judges, leaving "... annulled the following fiscal items: Q5 monthly tax for each telephone line or fixed or mobile- and the cancellation of Q100 by telephone centre or lines concentrated at these places. The rule challenged by law suits, because it represented double taxation, had been suspended since 8 January. "

".. $ 0.65 (Q5) tax per bag on the sale of cement in the country, which before the entry into force of the relevant decree was $0.19 (Q1.50) per unit. "

"... 10% in royalties or payments to the State for the use or extraction of mineral resources in the country. Until the adoption of the respective law, the companies paid the Treasury 1%. "

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