After the announcement of the intention to increase the tax on the distribution of cement and fuel in Guatemala, businessmen believe that in this scenario of incipient economic recovery it is not a good idea to increase the tax burden.
In order to face the effects of the economic crisis generated by the covid-19 outbreak, Guatemalan authorities are already beginning to discuss the fiscal policy to be applied in 2021.
In the government's review of Nicaragua's tax reform that has been in place since February, businessmen consider that no tax cuts will be made, even though production costs in the country have risen considerably.
After the approval on February 27, 2019 of the amendment to the Tax Concertation Law, which consists of raising from 1% to 2% the income tax for medium sized companies with higher income, and for large taxpayers from 1% to 3%, the productive sector has reported increases in its production costs.
Businessmen in the industrial sector in Nicaragua say that since the tax reform was implemented in the first quarter of the year, employment has fallen between 30% and 35%.
On February 27, 2019 was approved the amendment to the Law of Tax Concertation, which consists of raising from 1% to 2% income tax for medium enterprises with higher income. Another of the measures contemplated by the reform is to raise the income tax of large taxpayers from 1% to 3%.
For the IMF, the country "may need additional fiscal measures, focused on the short term, to alleviate financing pressures and improve debt dynamics.”
After analyzing the current economic situation in Costa Rica, the directors of the International Monetary Fund (IMF) commended the recent fiscal reform, which is important to restore fiscal sustainability.
In the midst of Nicaragua's political and economic crisis, the National Assembly approved a tax reform that increases the income tax of large taxpayers from 1% to 3%.
On the morning of February 27th, the reform of the Tax Concentration Law was approved, which also contemplates raising from 1% to 2% the income tax for medium sized companies with higher incomes.
In Panama, a proposal is being discussed that seeks to increase from 5% to 8% the Selective Consumption Tax on soft drinks, carbonated beverages, processed juices and other sugary beverages.
Laestrella.com.pa reports that "... The vice president of Corporate Affairs of the National Brewery, and representative of the Industrial Union of Panama (SIP), Juan Antonio Fabrega, warned last Tuesday that jobs generated by the industry of sugary beverages could be reduced, if the Selective Excise Tax is increased from 5 to 8%, as established by Law 570, which will be discussed today in the first debate in the Economy and Finance Commission of the National Assembly."
The new tax reform proposal presented by the Ministry of Finance of Costa Rica includes the creation of a global income system to impose and collect a tax on the profits of companies and individuals.
Taxing all of the profits of natural and legal persons, including those currently paid separately by the identity code income method, is the principal new feature of the new tax reform plan presented by the Ministry of Finance.
The union of tourist businesses is asking the new government to repeal the decree that increases by $1 the amount that each person must pay when entering or leaving the country.
The National Chamber of Tourism argues that in regards to the new charge of $1 "... it is opposed to this guideline, considering it a double charge that would be made by two dependencies of the Ministry of Agriculture and Livestock, for the same service."
Traders, industrialists and entrepreneurs in the agro sector disagree with the position of the main private sector union over the negotiation of new taxes.
Three business unions have ratified their opposition to new taxes in Costa Rica and have made known their total lack of empathy with the way the Uccaep, an organization that unites most of the unions in the private sector, has dealt with the Solis administration over tax issues, the negotiation of a shareholder register proposed by the government and other aspects related to the fiscal problems affecting the country.
The Executive is proposing to reform the scope of the law and charge a "registration for coffee production fee" of $0.50 per hundredweight.
Despite the outbreak of coffee rust, the debt of $200 million and the funding crisis facing the coffee sector, the Salvadoran government intends to collect more taxes. Currently the bill raised by the Executive Branch is being analyzed by the agricultural legislative committee.
On January 2nd the tax paid for building permits issued by the municipality of San Miguelito rose by 40%.
In the last 15 years the cost of building permits in the Municipality of San Miguelito has not been reviewed or adjusted, according to representatives of the entity. Because of this, the municipal authorities announced the increase of 40%, which they attributed the increase in building materials and labor in the last year.
Employers say the value added tax of 13% on services will raise end prices of buildings by between 4% and 8%, and propose a differential rate for the sector.
The Costa Rican Chamber of Construction (CCC) states that the construction of a dwelling requires other services such as electricians, plumbers, metalworkers, architects, engineers, and others, which will eventually transfer this 13%, impacting the final cost.
The member countries of the Framework Convention for the Control of Tobacco have approved raising taxes on the tobacco industry.
This new document seeks to "... strengthen measures relating to applicable taxes and prices in order to reduce consumption and the number of deaths from consumption of tobacco, as it is closely related to the cost of the product."
The Vice President and the Minister of Finance have insisted that the Assembly adopt a draft law to establish global income and convert the sales tax into value added tax.
This December is the date set for the plan to convert to sales tax into value added tax (VAT) and for the first quarter of 2015, the bill on global income. Also in 2015 a draft law will be submitted on the Framework Law on Exemptions.
Although the banks had sought to extend the term, starting September 1 entities must charge 0,25% on operations over $1000.
From September 1 banks, credit unions and savings and loans companies must withhold 0.25% for every transaction in made in cash, by check or electronically worth over $1,000.
The Directorate General of Internal Revenue, at the Ministry of Finance has published the regulations that refer to the new taxes.
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