Raising VAT from 12% to 15% and lowering income tax from 35% to 30% are part of the reforms that the Executive Branch is preparing to present to Congress.
Preliminary ideas being prepared by President Morales and a group of advisers also include incorporating the concept of world income.Although a formal document has not yet been submitted, the Executive has already started to give details of the proposal to members of Congress.
The Guatemalan congress has approved a budget extension worth $161 million in response to the national emergency.
Of the funds provided by the World Bank and donations $62 million will go to Guatemala's Highways Fund, Covial, and $25 million to pay contractors.
"According to the president of the finance committee, Mario Taracena, while the proposal was authorized as a national emergency, its approval comes late as the country's needs, which were caused by tropical storm Agatha, have intensified during the winter," reports Elperiodico.com.gt.
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