The industrial and commercial sector of Guatemala believes the measure sends a mixed message and is unfriendly to investment.
According to the president of the Union of Extractive Industries, Mario Marroquin, "it sends a mixed message, because a few days ago the Investment Summit 2013 was held, which presented Guatemala as having potential for investment in many sectors, including mining, and now they are saying that licenses will not be granted, what then happens to those interested in the country? ".
At the opening of the Guatemala Investment Summit the country was presented to 259 entrepreneurs from 26 countries as an attractive investment destination.
In addition, another 1,000 people attended the event which organizers say is the largest activity for attracting investment which has been held so far in Central America. "This event is the most important for investment promotion in the region. We are positioning Guatemala as an investment destination, in order to generate more formal employment, which the country needs," said Sergio De la Torre, head of the Ministry of Economy.
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).
Both sides are discussing three articles of the Tax Update Law, but so far have failed to reach an agreement.
According to Andres Castillo, president of the Chamber of Industry of Guatemala (CIG), one of the items that is causing disagreement is related to the payment of income tax (ISR) on the tips received by service companies.
A court ruling has suspended the Tax Authority in Guatemala from closing businesses who fail to comply with tax rules.
Mauro Chacón, President of the Constitutional Court (CC), explained that four actions of unconstitutionality have been presented by the chambers of Agriculture and Commerce, one of which was provisionally suspended by the Supreme Court.
The Guatemalan Tourism Institute plans to spend $1 million on online campaigns to promote Guatemala as a tourist destination.
According to Peter Duchez, director of the Guatemalan Institute of Tourism (Inguat), as time passes Guatemala must be promoted online, as 95% of the decisions taken by tourists are based on the Internet.
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.
The Chamber of Industry of Guatemala has submitted to the Constitutional Court an appeal against 14 items in the Laws of Taxation and Anti Evasion II.
"We see abuse in the functions that the SAT is acquiring in this new law," said Andres Castillo, president of the Chamber of Industry of Guatemala (CIG).
The commercial mission is planning to meet with representatives from Spanish business associations interested in investing in Guatemala.
The president will visit Spain from 12 to 15 February as part of a formal invitation, traveling with the ministers of Economy, Defense, Energy and Mines and the foreign minister.
The Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations is protesting against 40 items in the tax reform laws which came into effect on 1 January.
According to the members, this reform was approved by the Guatemalan Congress without much discussion and in a hasty manner.
According to an article published by Elperiodico.com.gt, CACIF intends to present to the Finance authorities a series of amendments that would modify decree 4-2012, the Act Strengthening the Tax Administration 2 (FAT2), and 10-2012, the Tax Law Update.
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."
Doubts on the legitimacy of government debts to banks and construction companies, which would be paid with the tax revenues, have prompted the president's decision.
The Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (CACIF) expressed its concerns to President Pérez Molina.
The presence or exclusion of the private sector in the Competition Commission, is the main theme of the discussion surrounding the bill being studied by the Congress of Guatemala.
Congressmen from the Unidad de la Esperanza (UNE) have requested the inclusion of private sector representation in the Competition Commission, a commission set up to investigate and penalize companies who use anti competitive practices and which seeks to prevent monopolies.
Among the changes requested by the Guatemalan private sector, are the elimination of insurance for theft of goods in transit and the current billing method.
Private sector representatives together with the Tax Authority (SAT) are working on a draft for a new law, which introduces changes to almost 80% of the current Customs Act.
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