Two companies are expected to complete certification this month to provide the electronic tax stamps service in Guatemala, and by January 2019 they would be operating throughout the entire customs system.
In July of this year, it was announced that the tender for the service of electronic tax stamps for containers in Guatemalan customs would no longer be carried out, allowing several companies to provide their services independently.
The decline in tax collection, the government's short-term commitments and the possibility of a reduction in the credit rating are factors that worsen Costa Rica's fiscal situation.
According to figures from the Finance Ministry, during the first nine months of this year the tax collection of the Costa Rican government had a slight increase of 1% over the same period last year.
Up to August, the external and internal public debt amounted to $18.463 billion, equivalent to 23.4% of the country's Gross Domestic Product.
According to figures from the Ministry of Public Finance, in the last nine years the debt to GDP ratio has slightly varied, between 23.3% and 24.8%.
Regarding the country's indebtedness level, Abelardo Medina, senior economist at the Central American Institute of Fiscal Studies, said to Dca.gob.gt that "... It is interesting to note that, although Guatemala reports the lowest level of debt in the region and one of the lowest in the world, the evaluation given by risk rating agencies does not reach investment level. This is a product of political instability but, especially, it is due to the limited size of its fiscal revenues."
Standardizing procedures and applying administrative silence in favor of the taxpayer, are some of the proposals that Congress has received for reforming the current regulations.
Due to the widespread delay in the tax refunds which is still harming the majority of the companies in the country, the Central American Institute of Fiscal Studies (Icefi), the Center for National Economic Research (Cien) and the Association of Exporters (Agexport), delivered to the Economic Commission at the Guatemalan Congress, a proposal to modify the regulations that are currently applied.
Raising VAT from 12% to 15% and lowering income tax from 35% to 30% are part of the reforms that the Executive Branch is preparing to present to Congress.
Preliminary ideas being prepared by President Morales and a group of advisers also include incorporating the concept of world income.Although a formal document has not yet been submitted, the Executive has already started to give details of the proposal to members of Congress.
Banning state suppliers from financing political campaigns, implementing reverse electronic auctions and technical specifications for medicine purchases, are part of the proposed reforms.
From a statement issued from the Central Institute for Fiscal Studies (Icefi):
The Central American Institute for Fiscal Studies (Icefi) submitted to Congress, ten proposals of amendments to the Law on Government Procurement, which gives priority to fiscal transparency and combating corruption.
A report from the Central Institute for Fiscal Studies said that mining activities in Guatemala are "far from presenting satisfactory levels of transparency."
From a report issued by the Central Institute for Fiscal Studies:
Fiscal transparency is a key element to ensure that tax revenues from the extractive industries translate into improvements in the quality of life of the population.
With the recent consent given by the Banguat for a new issuance of new debt totalling $1,917 million to finance the 2015 budget, the fiscal deficit could exceed 2.5% of GDP.
The private sector is not looking favorably on the approval given by the Monetary Board of the Bank of Guatemala for the possible issuance of $1.917 million in debt to finance part of the 2015 expenses, because the fiscal deficit would rise to levels above that considered acceptable in economic terms.
The Central American Institute for Fiscal Studies has carried out an assessment of the public finances 2010-2013, and prospects for 2014.
From a statement issued by the Central Institute for Fiscal Studies (Icefi):
The Icefi showed that sluggish revenues and a strong increase in public spending accelerated the growth of the fiscal deficit, from 4.6% of GDP in 2010 to 7.9% of GDP in 2013.
A study reveals the state's inability to meet the demands for services and road infrastructure that arise when a mining project is set up.
"Mining in Guatemala's economy in 2011 accounted for 2.8% of the production of goods and services nationwide .... By 2012, the total tax contribution of the mining sector was $62,496,766 equivalent to 5.7% of production of mining and quarrying," indicated the Central American Institute for Fiscal Studies (ICEFI).
If the additional tranche of $250 million approved by Congress is placed, the country's debt level will rise to over 40% of GDP.
Honduras's fiscal deficit will go from yellow to red alert if the government decides to issue $250 million more in debt bonds on the international market.
This amount, in addition to the $500 million already issued, will be used to finance the payment of the domestic debt and the general budget of revenues and expenditures of the Republic, explained Francisco Rivera, chairman of the Budget Committee of the Legislature to Laprensa.hn.
While Nicaragua and Panama have sustainable levels of public debt, for El Salvador, Honduras and Costa Rica the prognosis is "reserved" .
Recent analysis by the Central American Institute for Fiscal Studies (Icefi) reflects very different fiscal situations in each country.
An article in Prensalibre.com states that "data from the report indicates that the country with the greatest debt is El Salvador, as in 2011 it reached 50% of GDP, in 2012 it increased to 52% and it is expected to reach about 54% in 2013.
In late 2013 the fiscal deficit will be 4% of GDP and public debt will have increased to around 58% of GDP.
Elsalvador.com reports that "The Central American Institute for Fiscal Studies (ICEFI) argues that El Salvador needs a sustainable fiscal policy in order to support growth, promote equity and adapt to changing conditions in the international environment. Reform is also required in income, expenses and transparency. "
The Ministry of Government of Guatemala has awarded $5.3 million in contracts for road signs, via 68 separated purchasing acts.
This practice meant that in almost every event there was just one bidder, and that contracts could be awarded in just three weeks, avoiding the greater transparency and control present in a public tender.
"This subdivision is in addition to those made recently by the Department of Administrative and Security Affairs of the Presidency (SAAS) and the Ministry of Health" reports prensalibre.com.
In relation to GDP, the expenses of the Costa Rican state are the highest in Central America.
This was revealed by a survey conducted by the Central American Institute for Fiscal Studies (Icefi). Second place is occupied by the Government of Panama with 23% of GDP followed by Guatemala which has one of the lowest with 15.1% of production.
Costa Rica is the only Central American country which plans to increase current spending to a total of 18.6% of GDP, also the highest in the region. "... The tax burden is not enough to fund the standard of living in terms of public service delivery," said Renato Vargas Icefi analyst.
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