The Legislative Assembly approved in second debate a bill that aims to tax in the country the sale and self-consumption of imported or locally produced cement.
The initiative, which was approved in the first debate in the Assembly in mid-February and is still pending approval by the Executive Branch, establishes that the tax will be on imported cement produced nationally, in bags or in bulk, for sale or self-consumption, of any kind, whose destination is the consumption and marketing of the product nationally.
With the entry into force of 122-2019 Agreement, the application of the specific tax, the customs information corresponding to cement or clinker imports and the appointment of personnel to supervise storage places is regulated.
Since the 122-2019 Governmental Agreement was published in the Diario de Centro América on July 25, 2019, the regulations have become effective in the country.
A bill aims to increase the specific tax on cement distribution from $0.19 to $0.65.
The controversial tax on the distribution of sacks of cement in the country, which currently stands at $0.19 (Q1,5) could go back up to $0.65 (Q5), if the bill put forward by the Congress of the Housing Commission is successful.
The construction union of Guatemala states that construction costs have increased by about 6% since the entry into force in January of a tax on the distribution of cement.
Since the start of the charging of a $0.66 tax per bag of cement distributed, representatives from cement companies have reported a drop in sales.
Pelayo Llarena, president of the Chamber of Construction, told Elperiodico.com.gt that "...
The argument is that the tax on cement will increase the cost of housing by at least 6% and the tax on phones will directly affect users of prepaid telephone lines.
From a statement issued by the Chamber of Industry of Guatemala:
The Chamber of Industry of Guatemala emphasizes that even though it promptly denounced the risk of lack of transparency and accountability of the state budget for Fiscal Year 2015, it has been approved and will lead to negative impacts on the population.