In this scenario of economic crisis, falling tax revenues and the need to finance recovery programs, in Guatemala and Costa Rica it is already proposed to increase current taxes and create new ones.
Guatemalan authorities are already beginning to discuss the fiscal policy they will apply in 2021, when the economy will have to face the effects of the economic crisis generated by the covid-19 outbreak.
On average in Costa Rica more than one in five companies classified as Large Taxpayers do not pay taxes.
EDITORIAL COMMENT:
When the Tax Department does not fully complete its duties, competition between companies is settled not by the quality of products or services, or for the excellence of its managerial staff and their strategic direction, but for the ability of their tax advisors to reduce the amount of taxes paid.
The business sector will present proposals to solve the fiscal deficit, which may also be the foundation of a social pact.
17 proposals will be presented, aimed at two large areas: reducing spending and increasing revenue.
Jorge Daboub, president of the Salvadoran Chamber of Commerce and Industry, explained: “We understand that the country has a serious fiscal problem, the deficit has worsened due to the country’s negative economic situation. As the private sector, we have produced a document that will give the government tools to correctly address the problem, in a comprehensive and effective way”, reported La Prensa Grafica.
The Customs Director General is projecting revenue of about $1 billion, according to preliminary estimates for 2009.
During the first quarter of 2009, general collection decreased by 16%, $115.7 million less than for same period in 2008.
German Rivas wrote in Laprensagrafica.com: "Of this total, 40% was collected by Customs, which recorded a decrease of 25% from January to April this year, with the maritime border of Acajutla in Sonsonate and the land border of San Bartolo in San Salvador being the ones that were impacted the most. The five products that bring in the most resources with respect to duties on imports (DAI) and Value Added Tax (VAT) are fuel, machinery, electrical equipment, cars and plastic articles.
Up to and including February 2009, tax collection was $436.8 million, compared to $497 million during the same period last year.
The head of the area of macroeconomics for the Salvadoran Foundation for Economic and Social Development, Álvaro Trigueros, informed Elsalvador.com: “The reduction in tax revenues comes from lower collection of the Value Added Tax (IVA), which decreased by $53 million, while import taxes were down by some $10 million. The decline in imports is related to falling oil prices, lower tariffs and generally to a lower economic growth."
In February, the government collected $199.9 million in net taxes, 15.61% less than the $236.9 million collected in January.
According to official figures from the Central Reserve Bank (BCR), tax collection for February was also 13.76% lower than during the same period in 2008.
The mayoralties reported decreases between 10% and 70% in taxes which affect project execution and employment.
The president of the Corporation of Salvadoran Municipalities and Mayor of Antiguo Cuscatlán, Milagro Navas, said, "We are seeing a recession in all the mayoralties and now we are in trouble and are even considering staff reductions." Her own community has $300 thousand in unpaid taxes.
The decrease in tax revenue, mainly from value added tax and customs tariffs, have prevented the timely payments of the State’s obligations.
The elimination of the electricity subsidy payments, which affects those who consume in excess of 99 kilowatts, was a decision that was forced upon the Salvadoran government by the decline in revenues in the face of the economic downturn affecting the country.
español
2145
