Rice, vegetable oil, liquor, eggs, sugar and cement make up the bulk of the products in the list of goods most affected by illegal trade in the country.
From a statement issued by the Chamber of Industry in Guatemala:
Guatemala, July 19 2016. - The Chamber of Industry in Guatemala has revealed, as it has done repeatedly over the past twenty years, the situation of Contraband and Customs Fraud in the country, and this morning presented to the media the alarming statistics representing losses caused by this scourge in Guatemala.
The Executive is considering increasing taxes on cigarettes and alcoholic beverages as an option for balancing the 2015 budget.
With the provisional suspension of the tax on telephone lines the Guatemalan government is left with a deficit $237 million, approximately, which is why it is looking at bridging the gap using new taxes on liquor and cigarettes, as the main alternative.
The activities of well-established smuggling networks have distorted the normal functioning of trade, having become an everyday part of life for a sector of the population.
The closure of Central Tabacalera SA (Tacasa), which may have been caused by increased cigarette smuggling, mainly in Panama, can be seen as one of the many consequences of the phenomenon of illegal entry of goods.
Tobacco leaf producers will still export to Europe and America, while the industry will decline at the same pace as the contraction of the domestic market.
Elperiodico.com.gt reports on Deloitte's study presented by British American Tobacco (BAT), which notes that "in 2011 there were 15.7 million kilos of tobacco leaf for export, which generated $52.8 million in foreign exchange according to statistics from the Bank of Guatemala (Banguat).
The Pan American Health Organization denounced the continued interference by the tobacco industry in the passing of antismoking laws in the countries of the Americas.
Washington, D.C., 31 May 2012 (PAHO/WHO) - The tobacco industry continues to interfere with tobacco control policies in the Americas and these efforts have intensified since the 2005 entry into force of the WHO Framework Convention on Tobacco Control.
The new proposal would establish a tax of $0.09 (Q0, 69) per gram.
The initiative is supported by the Ministry of Health and organizations against the use of tabaco.
“If the proposal is accepted we would be able to raise about $66 million a year”, said the congresswoman Zury Rios.
"The new estimate is higher than the target proposed by the Superintendency of Tax Administration (SAT), a government initiative to raise Q356 million ($ 46.8 million) a year on restoration of the tax." states an article in Prensalibre.com
After a decision by the Constitutional Court, the tobacco company announced its willingness to dialogue.
The decision of the Constitutional Court in favor of an appeal by British American Tobacco, which alleged double taxation, will negatively impact tax revenues.
Sofia Oliva, manager of corporate affairs of the company, told Prensa Libre, "After being notified of the decision, we initiated contact with the government authorities to find long term solutions."
The Constitutional Court ruled in favor of an appeal by British American Tobacco, alleging double taxation.
The decision, by the highest court in Guatemala, repeals the second paragraph of Article 27 of the Tobacco Law which sets the basis for calculating the tax at no less than 46% of retail price.
The constitutional claim brought by the tobacco company noted that tax calculated on that basis, had "double taxation", since tobacco also pays value added tax.