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.
The Legislative Assembly approved in second debate a bill that aims to tax in the country the sale and self-consumption of imported or locally produced cement.
The initiative, which was approved in the first debate in the Assembly in mid-February and is still pending approval by the Executive Branch, establishes that the tax will be on imported cement produced nationally, in bags or in bulk, for sale or self-consumption, of any kind, whose destination is the consumption and marketing of the product nationally.
The authorities that will assume the government in 2020 in Guatemala could evaluate options to tax temporarily some sectors, however, there would be a risk that these taxes become permanent.
In Nicaragua, authorities reported a decision to suspend collection of the additional fee of $0.05 for each kilogram exported or imported by air.
The extra charge came into effect last April 25, but from the beginning the private sector spoke out against it, because it was argued that the tariff that the Nicaraguan government would apply, would put some local companies on the border of closure and cause a decrease of about $50 million annually.
In Guatemala, food industry businessmen are opposed to five bills that would change the rules on labeling and increase the tax on sugary drinks.
According to the Guatemalan Chamber of Food and Beverages (CGAB), bills that aim to increase VAT from 12% to 20% on sugary drinks and change the labeling rules, are based on misinformation.
A proposal to create a temporary tax to fund the fight against corruption has sparked the reaction of entrepreneurs, who are demanding that "the house be cleaned first."
An article on Prensalibre.com reported that the president of the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (CACIF), Jorge Briz said: "Before another tax, you must first clean house.
A proposal has been made to create a special and temporary tax on assets above a certain amount in order to finance the operations of the Public Prosecutor against impunity and corruption in the state.
Ivan Velasquez, head of the International Commission against Impunity (CICIG), believes it is necessary to move on from "... discussing corruption to taking action", and therefore is proposing, together with the Public Ministry, the creation of a new tax to strengthen the institution's budget in the fight against impunity and corruption.
The construction union of Guatemala states that construction costs have increased by about 6% since the entry into force in January of a tax on the distribution of cement.
Since the start of the charging of a $0.66 tax per bag of cement distributed, representatives from cement companies have reported a drop in sales.
Pelayo Llarena, president of the Chamber of Construction, told Elperiodico.com.gt that "...
In Congress doubts are being voiced over the effectiveness of the application of a tax of $0.65 per phone line and $13 for call centers.
Among the nine challenges presented by deputies to the proposal to place a tax on phones, the lack of definition of the use of funds and details about who should pay the tax stand out the most, in particular whether it should be the user or the business who pays.
The government is to propose the creation of a new tax to finance part of the budget of the Ministry of Interior, which "would be directed towards the upper and upper middle class" .
This tax would not be for the entire population, since according to the Interior Minister, "... it will be directed towards the upper and upper middle class, because they have the ability to pay.
The Constitutional Court has ruled as unfounded the suits on unconstitutionality filed by cement companies and left in place a tax of $0.65 on the distribution of each sack of cement.
The Constitutional Court decided to maintain the tax of $0.65 per sack of cement as indicated by the reform approved for the Law of Specific Tax on the Distribution of Cement under the fiscal year 2015 of the National Budget.
Taking advantage of the low price of oil the government is discussing increasing the tax base on the distribution of petroleum and petroleum products.
The proposal seeks to raise the fuel tax which is currently around $0.60 for gasoline and $0.17 for diesel. Moreover, the measure would also provide an increase in the rate for petroleum products such as kerosene, naphtha and liquefied petroleum gas.
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 application of tax of $0.65 per mobile phone line that had been proposed by the Executive to fund part of the 2015 budget has been temporarily suspended.
The Constitutional Court temporarily suspended the collection of the tax on telephone lines after the Chamber of Industry and the three phone companies operating in the country submitted an appeal against the tax.
The Foundation for Development in Guatemala argues that there is a lack of technical justifications for new taxes and lack of transparency in approving the 2015 budget.
From a statement issued by the Foundation for the Development of Guatemala (FUNDESA):
The Foundation for the Development of Guatemala - FUNDESA - expressed concern about the non-transparent way in which the General Budget of the Nation for 2015 was approved, and the lack of technical studies to support various tax increases, including both the one applied to telephony and the distribution of cement, as well as the excessive increase in royalties.
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