Between January and August 2013 $1.135 billion was raised in VAT on imports, while in the same period in 2012 the amount was $1.137 billion.
Data from the Tax Authority (SAT) shows that in terms of customs duties $157 million was collected, down by 22% compared to the $202.2 million reported in 2012.
"There has been no improvement and collections continue to decline.
The amnesty includes those who owe taxes for tax periods prior to 1 January 2012.
S21.com.gt reports that "this measure is complementary to the cancellation of 10% in tax payments and 50% reduction in the circulation tax".
"It was clear they had to agree to the waiver. Almost always a law produces the need for a government decision. It is estimated that $77 million is owed in taxes, of which, 65% relates to income tax.
The measure to collect value added tax on tips is being maintained despite the resistance shown by the corporate sector.
"We have reached an agreement with employers and the three articles in which they disagreed have been excluded from the proposed amendments to the Tax Update," said Pavel Centeno, Finance Minister (Minfin).
According to Andres Castillo, president of the Chamber of Industry of Guatemala (CIG), they only signed up to the Value Added Tax (VAT) on tips in order not to hinder the discussion of other items on which agreements have already been made.
The exemption for fines established under the National Customs Act will be extended until June 15 of this year.
According to Pavel Centeno, the Finance Minister of Guatemala, the deadline is March 15, however, it will be extended, for the fifth time, until 15 June.
"Not a single fine has been charged to anyone and it is a problem because it encourages the kind of disorders there have been in the past and it lowers tax revenues," said the official.
Guatemala's business associations are asking for explanations about the government's decision not to accept the changes already agreed on by a bipartisan technical committee.
"Andres Castillo, president of the Committee of Commercial, Industrial and Financial Associations (Cacif), explained that the technical committee formed by the Ministry of Finance, the Tax Authority, the Vice President and the private sector" reached agreement on 28 items which were drafted with the preamble, "which were rejected by Perez Centeno", reported Siglo21.com.gt.
Guild members of the Chamber of Industries are in favor of requesting a revision to the current tax reform which came into effect on January first.
The chamber’s president, Andres Castillo said that "some union members" have identified several deficiencies in the tax reform approved by Decree 10-2012, Tax Law Update. "Most of all there is a lack of information and lack of criteria for how authorities will be enforcing this law."
The Ministry of Finance in Guatemala has signed agreements to exchange tax information with Norway, Sweden, Finland, Iceland, Denmark, Greenland and the Faroe Islands.
These agreements are aimed at facilitating the exchange of information in order to better control the fiscal responsibilities of individuals and companies in Guatemala and those countries.
Once publicized in the official newspaper, the new law passed by the Guatemalan Congress on 27th January, will take effect from February 25th .
The new law restores the higher tax rate on tobacco which had been removed last year and establishes special invoices for farmers, among other things.
Siglo21.com.gt in its publication reports, "The new law has 75 articles in which there are amendments to Value Added Tax (VAT), and taxes on land, sea and air vehicles. There are also reforms to the Tax Code, Law on Revenue Stamps and Stamped Paper Protocols, Law on Tobacco and related products, and finally a change to articles and their reforms in the Penal Code. "
The Ministry of Finance in Guatemala has accepted demands made by the Union of Used Vehicle Importers and announced changes to the draft Tax Update.
The government has backtracked on its plans for fiscal reform in light of strong reactions from used-vehicle importers. They suggested using the same system for calculating the tax on entry of used cars into the country, and permitting entry of used cars up to 15 years old, rather than the 7 years proposed by the Ministry of Finance.
Cacif, leader of the Guatemalan private sector, said that "we must all do our part" and promised a consensus with the government.
The presidents of business chambers of Guatemala met on Wednesday with President Otto Perez and Finance Minister Pavel Centeno, to hear a proposal for tax reform law, and adopted a positive approach to the coming changes.
The bill provides that no amounts may be deducted from VAT on purchases, and increases the tax base for the payment of income tax.
The Guatemalan government’s tax reform law is ready, and contains several new points: employees ability to deduct VAT from annual purchases from their taxes has been eliminated, the tax base has been increased, and the road tax for vehicles has been doubled.
Among other measures, the bill proposed by the government examines establishing regimes for income tax and eliminating accreditation for VAT returns, a method that has encouraged evasion.
The new Guatemalan government has refined its proposed fiscal law reform, which includes proposals such as removing the accreditation of the VAT tax and setting different levels for the deduction of income tax.