Tax holidays fail to attract capital in Guatemala

The extended exemptions from paying taxes in Guatemala haven't been effective for attracting foreign direct investment (FDI).

Wednesday, June 25, 2008

The 11 billion quetzales (about 1.458 billion dollars) in tax revenues that the government has decided to forego have not achieved the goal of attracting more capital.
A study released Tuesday says that reducing tax breaks and focusing on making taxes to existing business less onerous would be more productive for the nation.
The analysis by the Central American Institute of Tax Studies says the tax holidays are an ineffective strategy for Guatemala.

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