The Single Property Tax and the Tourism tax on Hotels and exits and entrances to the country is to be collected by the Tax Authority (SAT).
Siglo21.com reports view the head of the SAT, Miguel Gutierrez, said the SAT would collect the taxes on behalf of the Municipality and Inguat, and that they would not go into the state’s common fund. "The proceeds would be returned to entities upon retention of a percentage.
The suspension of the tax was made official on Tuesday by Congressional act.
Representatives of the Guatemalan Association of Cruise Tourism and the Institute of Tourism saw the move as positive to improve their competitiveness with other destinations.
Leonel Azurdia of the Association of Cruise Tourism, told Prensalibre.com that "the suspension of the tax, which was formalized last Tuesday by a congressional, gives legal certainty to attract more ships."
Estimates for the new cruise season, which starts on September 29, contemplates 32% less arrivals.
One reason for this low arrival rate could be blamed on the failure of Congress to reform the Organic Law of the Guatemalan Institute of Tourism (INGUAT), which would eliminate the current tax of $ 10 charged to each cruise passenger.
On the subject, news portal Newsinamerica.com published comments from Karina Velasquez, Manager of Social Communication at INGUAT, "The cruise lines call to learn about current status of the country and benefits in docking here, but the news is not good at all because of the imposed tax to tourists.”
Despite the government committing to get rid of the $10 tax per cruise ship passenger, it still remains in force with the beginning of the season just 27 days away.
The first boat with tourists, of a total of 62, is scheduled to arrive on 29 September and the sector's businesses are concerned that the $10 tax will not be abolished in time.
In May the government promised the leaders of the Florida-Caribbean Cruise Association (FCCA) that the tax would be eliminated.
After meeting with the Florida-Caribbean Cruise Association, the Government committed to eliminate a $10 tax charged to cruise ship passengers.
Roberto Alejos, President of the Congress, explained that on Thursday they will introduce an urgent process to suspend this tax.
Representatives from the Florida-Caribbean Cruise Association (FCCA), composed of 15 cruise lines which operate over 100 vessels, visited Guatemala and met with President Alvaro Colom.
A discussion to impose a $10 levy to cruise ship tourists is back in Congress.
Back in November 2009, Legislative Decree 38-2009 suspended the collection of this tax, but President Álvaro Colom vetoed such decree.
More recently, the Constitutional Court (CC) ruled that it is not against the constitution to suspend collection of the tax. This has caused the discussion to go back to Congress.
The Tourism Ministry and the Tax Authority will both control that hotels pay the hosting tax.
Roberto Dobles, director of the Tourism Institute, expects to start controlling this tax in March, once both institutions sign an agreement.
“This tax represents 50% of the Institute’s budget … some hotels evade it… so we’ll punish those companies not transferring it, as they are only middlemen for something paid by guests”.
Cruise ships promise a 40% increase in visits to the country if an agreement is reached not to collect the $10 per visitor departure tax.
The $10 per visitor departure tax fee was scheduled for implementation in January 2009. However, due to pressure from cruise ship companies that Guatemala would be removed from the list of destinations, implementation had been postponed until May 1.
The $10 departure tax for visitors, which became effective yesterday, was postponed until May 1.
Prensalibre.com reports: "Executives from the cruise ship industry and officials met yesterday in the country to reach an agreement regarding the controversial charge, which was suspended until next May or until an agreement is reached.
Craft makers, tourism agents, transporters, and tourism operators rejected the tax, and the Chamber of Tourism asked that the mandatory tax not be made effective."
Norwegian Cruise Line conditioned the arrival of its cruise ships to the country on whether the Government continues to insist on charging the $10 departure tax for each tourist.
Prensalibre.com reports that "The company is threatening to take its 27 ships, which it was planning to bring to Guatemala this year, to other countries. It is also recommending that the world meeting of cruise ships not take place in Guatemala.