Public safety safety security Taxes taxes Increased taxes citizen insecurity Álvaro Colom Congreso Nacional de Honduras Honduran National Business Council Insecurity new tax Asociación Nacional de Industriales (Honduras) Banking Central American Chambers of Commerce

Regional Security Tax Being Considered

Central America is evaluating the possibility of implementing a tax to fund regional security plans.

Monday, June 27, 2011

The announcement was made by the Guatemalan president, Alvaro Colom, at the International Conference in Support of Central American Security Strategy.

The intention would be for Central American countries to have more resources for budgeting programs considered critical to the population.

An article in DPA quoted the president as saying "It's a commitment to make fiscal reforms in each country which would include a security tax”

Source: laprensagrafica.com

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Álvaro Colom

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Central America

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security safety Increased taxes taxes Taxes Public safety

Tax Increase Rejected

September 2020

After the announcement of the intention to increase the tax on the distribution of cement and fuel in Guatemala, businessmen believe that in this scenario of incipient economic recovery it is not a good idea to increase the tax burden.

In order to face the effects of the economic crisis generated by the covid-19 outbreak, Guatemalan authorities are already beginning to discuss the fiscal policy to be applied in 2021.

Fiscal Outlook in Central America

February 2018

In one of the regions that receives the least amount of taxes in the world, the tax burden remained relatively stable in 2017.

From the section Fiscal Outlook for Central America, from the report "Macro-fiscal Profiles: 9th edition", by the Central American Institute of Fiscal Studies (Icefi):

Tax Burden is Growing in Central America

August 2017

The tax burden grew from 13.4% in 2013 to 14% in 2016, both due to the delayed effect of the tax reforms in Honduras and Nicaragua, as well as better management on the part of tax entities in Guatemala and Panama.

From the Regional Economic Report (IER) 2016-2017: Opportunities and challenges for Central America, by the SIECA:

Tax Reform Being Prepared in Guatemala

July 2016

Raising VAT from 12% to 15% and lowering income tax from 35% to 30% are part of the reforms that the Executive Branch is preparing to present to Congress.

Preliminary ideas being prepared by President Morales and a group of advisers also include incorporating the concept of world income. Although a formal document has not yet been submitted, the Executive has already started to give details of the proposal to members of Congress.