At the moment Guatemala has no funds available to implement the increase of $100 million in the Coffee Trust approved by Congress.
This was announced by Finance Chief Pavel Centeno. He explained that the trust " ... will be used specifically to the change plantations impacted by rust and not be given to those who were late making the payments already requested ", reported Prensalibre.com.
Authorities suggest the Guatemalan State should invest in these types of projects to bring in additional revenue.
This was the suggestion made by the finance chief, Pavel Centeno to the Guatemalan Congress during his explanation of the draft budget for 2014. "We have to look at investment in mining and hydropower in order to reduce the oil bill we pay for energy.
Between January and August 2013 $1.135 billion was raised in VAT on imports, while in the same period in 2012 the amount was $1.137 billion.
Data from the Tax Authority (SAT) shows that in terms of customs duties $157 million was collected, down by 22% compared to the $202.2 million reported in 2012.
"There has been no improvement and collections continue to decline.
The exemption of fines for customs offenses will be extended, for the sixth time, until December 15.
The exemption which was to expire on 15 September will be extended until 15 December.
"We are extending the agreement because there is a new Intendent of Customs and we do not want to generate distortion in operations. We believe this will be the last extension to be given," said Pavel Centeno, Minister of Finance, yesterday.
With the payment to be made next month, the 82% stake held by Ferrovías will become property of the Guatemalan state.
This will see the fulfilment of the judgement by the International Centre for Settlement of Investment Disputes (ICSID), which ruled in favor of the company subsidized by Railroad Development Corporation (RDC) in 2012. The Finance chief, Pavel Centeno, said "we have identified the funds and the space in the budget where the money will come from".
The Ministry of Finance has submitted the National General Budget for fiscal year 2014, which considers a 2.3% fiscal deficit.
According to Pavel Centeno, the Guatemalan Minister of Finance, the plan was developed in accordance with lower growth prospects, with a fiscal deficit of about 2.3%.
The current budget is $ 8.409 million and to two additional credits will be needed to finance it, and those have not yet been approved by the Legislative.
The Central American Institute for Fiscal Studies has highlighted the unsustainability of the fiscal deficit in Costa Rica, El Salvador, Guatemala and Honduras.
Pensalibre.com reports that "... according to the results of a report by the Central Institute for Fiscal Studies (Icefi) submitted yesterday ... Guatemala, El Salvador, Honduras and Costa Rica find themselves with in unsustainable scenarios regarding public debt in the next few years. "
"Weak public institutions in Guatemala and a polarized political environment continue to limit its credit quality" - Standard & Poor's
An article in elperiodico.com.gt reports that "The three most important credit rating agencies internationally: Moody's, Standard & Poors and Fitch Ratings, have pointed to deficient management in Guatemala's social indicators."
The amnesty includes those who owe taxes for tax periods prior to 1 January 2012.
S21.com.gt reports that "this measure is complementary to the cancellation of 10% in tax payments and 50% reduction in the circulation tax".
"It was clear they had to agree to the waiver. Almost always a law produces the need for a government decision. It is estimated that $77 million is owed in taxes, of which, 65% relates to income tax.
The issue that is planned to be made in July, will be used to settle accounts for $448.7 million which the government owes to builders.
"It's an important issue," said Alejandro Sinibaldi, head of the Ministry of Communications, Infrastructure and Housing (VIC), therefore, this month the initiative will be taken to Congress.
According to the Finance Minister Pavel Centeno, the project will be undertaken after rearranging the budget, as there are plans to make spending cuts of about $153.8 million amid falling revenues.
The Government will ask Congress to hasten the adoption of a law on bank secrecy, after an unofficial list of tax havens has been released in France which includes Guatemala.
According to President Pérez Molina, the country's inclusion in the French list "is a unilateral decision" of the French Government, because "Guatemala has not approved bank secrecy."
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).
According to Andres Castillo, president of the Chamber of Industry of Guatemala (CIG), they only signed up to the Value Added Tax (VAT) on tips in order not to hinder the discussion of other items on which agreements have already been made.
Between June and July, the government plans to place in the local market $250 million in Treasury bills in order to ease their financing needs, not addressed by Congress.
According to Pavel Centeno, Finance Minister the measure is in response to the Government not gaining Congress' approval for taking out loans.
"We hope that legislators understand the sensitivity of financing the general budget of the nation.
The exemption for fines established under the National Customs Act will be extended until June 15 of this year.
According to Pavel Centeno, the Finance Minister of Guatemala, the deadline is March 15, however, it will be extended, for the fifth time, until 15 June.
"Not a single fine has been charged to anyone and it is a problem because it encourages the kind of disorders there have been in the past and it lowers tax revenues," said the official.
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.