Taxes raising taxes taxes Increased taxes tax reform Government Cámara de Comercio e Industria de El Salvador Economics Government expenditure Public Finance Treasury Ministry (El Salvador) fiscal pact income tax low tax collection public spending

Fitch Recommends Raising Tax Burden in Guatemala

Fitch suggests an increase in tax burden in order to improve government spending and thus achieve higher social spending.

Friday, January 28, 2011

©image: Wade Morgen

This will improve the country´s risk ratings and thus attract investment, said Erick Campos, Executive Director of Fitch.

Sigloxxi.com includes statements from the executive, "Guatemala has maintained a record of good macroeconomic management, which has allowed it to have good credit ratings, but cannot advance any further because social conditions are not the best, so to progress, the State must increase social spending and therefore needs more revenue. "

Source: sigloxxi.com

Key entities

Fitch Ratings Centroamerica Erick Campos

Countries

Guatemala

Insight

tax burden Increased taxes taxes raising taxes Government Taxes

More Taxes in Guatemala

August 2009

The Government is requesting approval of a new tax package, for financing increased spending by the State.

The editorial in newspaper "El Periódico de Guetemala", recalls campaign promises by President Colom, of not raising taxes. The government is instead pushing for increases, at a time when tax cuts should be done to fight the economic crisis.

High Taxes Create Informality

June 2011

If many large companies are granted tax exemptions for long periods of time, why not give the same exemptions to SMEs?

The analysis of the topic in an article in Laprensa.hn on the high rate of informality in microenterprises in Honduras, can be extrapolated to all Central American countries.

Is it necessary to raise taxes in Guatemala?

April 2010

Increased economic activity and tax collection imply that increasing taxes will be counterproductive.

The crisis seems to be over. At its worse, fiscal revenue fell, linked to less consumption, exports and imports. This effect teamed with sustained levels of social expenses, and left the government very short on resources, a problem authorities intend to solve via tax hikes.

Businesses say NO to Security Tax

July 2011

Governments should control tax evasion, expand the tax base and combat corruption, increasing revenue to finance the fight against insecurity.

A statement by the Federation of Chambers of Commerce of Central America (FECAMCO) reads:

THE FIGHT AGAINST DRUG TRAFFICKING AND SOCIAL VIOLENCE DOES NOT SOLEY DEPEND ON MORE TAXES

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