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 tax on capital gain charged on real estate transactions discourages building middle-class housing.
The construction industry and the private sector have asked the Honduran Congress to repeal the 10% capital gains tax charged on real estate transactions. Both sectors believe that the tax discourages real estate development.
"The Law of Public Finance Planning, Control of Exemptions and Evasion Measures approved by Congress last year taxes at 10% the buying and selling of real estate ."
The new tax has been created by the Mexican government in retaliation for the suspension for health reasons on Honduran exports to the Mexican market.
The suspension of exports from Honduras to this country were put in place because of the threat of entry of early mortality syndrome (SMT by its initials in Spanish), which has caused great losses in the Mexican states of Sonora, Sinaloa and Nayarit.
The tax rate for domestic and foreign investors in mining has increased from 3% to 6%-7%
"Between six and seven percent was the amount finally passed in Congress, at the time of the approval MPs in the National Congress were determined to raise the tax rate, resulting in companies paying even more now than specified in the original project ," said the chief of the Department of Natural Resources and Environment (Serna), Rigoberto Cuellar.
A bill introduced by the Ministry of Finance has increased from 10% to 25% taxes paid by natural or legal persons who are not resident in the country.
According to an article in Elheraldo.hn "In order to raise about 100 million lempiras [$5 million], the authorities of the Ministry of Finance presented to the plenary of the National Congress a bill to increase from 10 to 25 percent several tributes levied on natural or legal persons not resident in Honduras. "
Warnings from Honduran businesses about the flight of capital resulting from the application of the controversial tax on banking transactions (known in Spanish as the ‘Tason’), are coming true.
This is how representatives from Honduran companies explained things, after statements from President Porfirio Lobo recognized a reduction in revenue because of the "Tason".
The executive power has formally withdrawn the Law on Tax Breaks and Rationalization of Public Expenditure Control to Strengthen Public Finances, known as "paque-tito" in Spanish.
The initiative had been returned to the Ministry of Finance by the Legislative Budget Committee, which requested more details about which exemptions would be eliminated.
"Representative Francisco Rivera said that another aspect to be reviewed is that the budget has large discrepancies related to tax collection, and that ‘we will not be able to obtain the necessary resources to finance these expenses. Given the reality, that we do not have the necessary resources, we must reduce the size of the government and make it more efficient'" reported latribuna.hn.
A legal reform establishes imposing a single municipal tax of 1.5% for mobile, fixed line, internet and cable television operators,.
Given the lack of uniformity and randomness of tax collections by municipalities, Congress has amended section 75 of the Municipalities Act to establish an annual payment for telecommunications companies to municipalities.
President Lobo has vetoed a $34 fee for nationals and tourists that was firmly opposed by the tourism industry.
The president of Honduras, Porfirio Lobo, recently announced that the controversial "immigration whack" of $34 that was going to be charged to domestic and foreign travelers entering and leaving the country, has been vetoed.
The Lawyers Anticorruption Bar has filed with the Supreme Court a lawsuit against the new immigration fee of $34 approved by Congress.
The lawyer, Mauricio Torres Miller, a member of the Anticorruption Bar, said the suit has been bought because of violation of constitutional provisions.
An article on Proceso Digital’s website states that, "the legal professional also said that the lawsuit, 'is against acts by Congress and by the deputies themselves who once again have violated the Constitution, violated the decree of free movement of people, violated a series of articles that actually harm free movement independently of the economic damage which we have not yet stated. '"
President Porfirio Lobo Sosa told media that he does not support the hike from $27 to $60.3 in the airport charge.
The president told HRN radio in Tegucigalpa, "The increase in airport tax will not stand."
The increase, approved last week by the Honduran parliament, is considered in some quarters to be "a rip off."
The company Inter Airports, license holder of Honduras’ four international airports, "claims that the increase is because the flow of passengers in Honduras is low and that, with the opening of new the airport at Palmerola, Comayagua, the number of visitors will go up from 600,000 to one million in the next three years", reported Elmundo.
As soon as the law is published in the Official Gazette, the new rate will go up from $27 to $60.3.
At the moment, Panama has the highest airport fee in the region, at $40, followed by Nicaragua, $38; Guatemala, $30, Costa Rica $28, and El Salvador $20.
Representatives from the company Inter Airports, concession holder of four international airports reported that the increase is due to the "very low" rate of passenger traffic in the country.
And apparently for bureaucracies in general, including those of international organizations; an "expert" from the Inter-American Development Bank is supporting tax reform in Costa Rica.
Although officially the IDB "does not advocate a tax burden or specific tax policy," one of its officials warmly supports the project to increase the tax burden to support the Costa Rican economy, to the point of suggesting that the tax burden be similar to Argentina’s.
With the new taxes the government intends to raise between $200 and $250 million.
What started as a tax to raise funds to fight the insecurity plaguing the country, has ended up become a second tax reform, with a package of taxes to be levied on economic activities.
Taxes on income, sales, and gross financial savings, especially for the banking sector are some of the new taxes that the government has decided to implement, the second time it has made changes in just eighteen months.
The controversial charge on bank transactions of over $3000 is now in effect in the country
Despite the strong opposition generated by the private business sector, Honduran Congress has passed the security tax bill, which applies to some banking transactions. Funds raised will go towards strengthening measures to combat insecurity in the country.
An article in Proceso.hn states: "The fund will be used by a trust which will be administered by government representatives, the business sector and society.