The government of Honduras will pay $49 million plus another $13 million in interest on the 13 year rent of two corvettes and six ultra fast boats designed to combat drug trafficking.
The direct purchase transaction has stirred controversy in the Honduran political arena, where it was stated that there was no declaration of emergency justifying the lack of an international tender.
In Honduras taxes on bunker fuel and kerosene will be effective from 2013.
For bunker fuel, the Executive estimates charging a tax of 33 cents per gallon.
Laprensa.hn reports, "As for kerosene and cooking gas, 690,000 barrels are imported per year (28.98 million gallons) and are subject to a tax of 29 cents (5.73 Lempiras per gallon at the current exchange rate) , which will provide 166 million lempiras ($8.5 million) in taxes.
Representatives in the Honduran Congress have refused to vote for budget increases where contractors bid low for works only to later claim large cost increases.
"They said they are not looking at the progress of the works already tendered, for which reasons they haven’t ruled out that this delay is a strategy to ask for an extension of the budget for these projects.
The increase in the income tax payment affects services for cable television, air tickets and public entertainment among other things.
The project submitted by the Ministry of Finance had been suspended by the National Congress on the grounds that such increases ultimately affect the end consumer, but discussion of the project was later taken up again.
A bill introduced by the Ministry of Finance has increased from 10% to 25% taxes paid by natural or legal persons who are not resident in the country.
According to an article in Elheraldo.hn "In order to raise about 100 million lempiras [$5 million], the authorities of the Ministry of Finance presented to the plenary of the National Congress a bill to increase from 10 to 25 percent several tributes levied on natural or legal persons not resident in Honduras. "
Given the low tax collection, the plenary of the legislature has approved an extension, until December 31, 2012, for the Tax Amnesty Act.
The new amnesty favors those taxpayers who, for financial reasons, had failed to meet their tax obligations and make tax payments for tax year 2011.
"The decree empowers the Attorney General's Office (PGR in Spanish) to arrange collection, sign agreements for payments, and make the waivers in the case.
Ficohsa will be the trust fund manager for the construction of 40 kilometers of road.
An article in Tiempo.hn reports that, "The commissioner of COALIANZA, Octavio Sanchez, told Tiempo that through a public tender construction companies will be invited to submit bids, and whoever presents the best offer will be chosen. Sanchez explained that the government will pay the company for the cost of those 40 miles at 50 million lempiras per year, which is the amount spent annually in the budget of revenues and expenditures for the maintenance of the road. The final project cost will be defined when the firm has been contracted. These funds will be administered for purposes of payments to the executor of the work, by the FICOHSA bank."
The Honduran Council of Private Enterprise says that reform of the Law on Income Tax is unconstitutional because it is confiscatory.
An article in Elheraldo.hn reports that "The Honduran Council of Private Enterprise (COHEP) argues that legislative approval of the Evasion Measures Act to income tax is unconstitutional, confiscatory and violates a judgment of the Supreme Court dated February 1, 2012. "
In Honduras there are 151 operating permit applications for mining projects involving huge investments that are waiting to be processed.
Businessmen say that "The lack of a law regulating the mining sector is the main obstacle to the 151 stalled requests by foreign and national investors, who have millions available to exploit deposits in Honduras."
The Honduran Council of Private Enterprise is warning about a potential loss of competitiveness for companies investing in the country.
Through its president, Aline Flores, the COHEP (Honduran Council of Private Enterprise) is opposing a new tax package sent to Congress by the government.
According to Flores, the "Law of rationalization of tax breaks and control of public spending in order to strengthen public finances" will affect the competitiveness of businesses and the investment climate, which could be a disadvantage in terms of regional competition, reported LaPrensa.hn.
A legal reform establishes imposing a single municipal tax of 1.5% for mobile, fixed line, internet and cable television operators,.
Given the lack of uniformity and randomness of tax collections by municipalities, Congress has amended section 75 of the Municipalities Act to establish an annual payment for telecommunications companies to municipalities.
Congress has approved a contract for the use of waters by a geothermal plant in Platanares which will produce 35 KW.
The approved contract gives the operator the same time period for exploiting the resource as projects generating electricity from renewable resources and makes them responsible for any damages incurred by their work.
"Article one of the a decree approves 'each and every one of the parties a contract, for the use of domestic water for geothermal power generation, between the Ministry of Natural Resources and Environment via the Platanares Geothermal Project', in the municipality of La Union department of Copán," published Laprensa.hn.
The Italian construction company will manage the 1-B section of the ring road in the city of Tegucigalpa, at a cost of $20 million.
The National Congress has approved a contract with the company Astaldi, who was selected in a tender in which 24 companies participated, to complete the unfinished ring road in Tegucigalpa.
"It is estimated that construction of the 7.1 kilometers that make up section 1-B will take about 12 months, which means that the works should be completed in 2013. The cost of the project is 20 million dollars, resources that have been provided by a loan from the Central American Bank for Economic Integration", reported Laprensa.hn.
This week, Congress will discuss the construction of a jail in San Pedro Sula and another in Comayagua.
In the next few days, the National Congress will begin debating on the authorization for the construction of prisons in San Pedro Sula and Comayagua, according to John Orlando Hernandez, president of the legislature.