The SAT lowered its tax collection goal for 2009 by $441.
For 2009, the Tax Administration Superintendent (SAT) in Guatemala had planned to raise $4.758 billion, but it reported yesterday that the target was adjusted to $4.32 billion, a decrease of 9.28%.
Prensalibre.com reported that the Finance Minister, Juan Alberto Fuentes Knight, addressed the impact on the fiscal deficit: "It would have to be covered by a decrease in operating expenses, plus donations and debt grants pending approval, but it is expected that the aforementioned deficit will remain at 2%."
The minister of Finance asked that the second initiative for fiscal reform be approved; said initiative includes the tax for the first-time registration of vehicles
"At times it seems that the interests of some 25 thousand people, who are the ones that buy new vehicles each year and who argue that they will be affected by the tax for first-time registration, are more important than the interests of a greater number of Guatemalans who will benefited from the resources that will generated," said the Minister, during the presentation of the Code of Ethics and Conduct for the Superintendence of the Tax Department.
Opposition lawmakers have not a decided not to sign a report that favors a tax package that will provide financing for the 2009 budget.
Yesterday, for over two hours, Fuentes Knight tried to convince the few congressmen that attended the meeting that the tax package, which includes the creation of new taxes, is needed in order to be able to carry out social benefit programs next year.
The proposal to create the Solidarity Tax, another for vehicle registration and one that will increase the VAT paid on vehicles has encountered resistance in the private sector.
Minister of Finance, Juan Alberto Fuentes Knight, defended the fiscal modernization proposal and explained that if new taxes are not created and if the existing ones are not modified, they run the risk of leaving a "fiscal hole" for next year.
The Executive Power sent the first part of the fiscal modernization project to the Congress of the Republic without the proposal for the new income tax (IRS) and VAT retencions.
The modernization project will be implemented over a period of two years, and includes reforms in public expenditure, the creation of citizen's observatory, a new set of regulations for the administration of trusts, and a Vice-Minister of Transparency at the Treasury.