Guatemala's Congress has approved the so-called Anti-Evasion Act II, with 120 votes out of a total of 158, which, among other things, restores the higher tobacco tax rate, abolished in 2011.
With the elimination of this tax, the state has failed to collect Q20 million ($2.56 million) annually, according to an article in Siglo21.com.gt.
Last October, the Constitutional Court ruled in favor of British American Tobacco Central America, which had appealed against the second paragraph of Article 27 of the Tobacco and Tobacco Products Act . It stated that the basis for calculating the tax must not be less than 46 percent of the suggested retail price to the public. The ruling decided that the amount to be used to calculate the tax is the sales price in factories for domestic cigarettes, or the cost plus insurance and freight on imported goods.
Also contained in the newly passed law against tax evasion, are special invoices established for agricultural and artisanal producers, so that "there are no longer intermediaries declaring on behalf of producers, because this was how taxes were avoided”, said Alejandro Arevalo, a member of the Unionist Party (PU), because it removes the ability for them to "claim tax credit from special invoices."
Source: sigloxxi.com
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February 2012
Once publicized in the official newspaper, the new law passed by the Guatemalan Congress on 27th January, will take effect from February 25th .
The new law restores the higher tax rate on tobacco which had been removed last year and establishes special invoices for farmers, among other things.
October 2010
The Constitutional Court ruled in favor of an appeal by British American Tobacco, alleging double taxation.
The decision, by the highest court in Guatemala, repeals the second paragraph of Article 27 of the Tobacco Law which sets the basis for calculating the tax at no less than 46% of retail price.
September 2011
The coffee sector has announced its opposition to a proposal to establish a 5% surcharge on Income Tax (ISR in Spanish) for the agricultural sector.
A press release by Anacafé states:
The Guatemalan coffee industry via the National Coffee Association, Anacafe, has expressed concern about the establishment of a 5 percent surcharge on Income Tax,, referred to in the draft Anti-Evasion Act II which is now being considered in the Congress of the Republic. Political parties in their current campaigns have said that they will not raise taxes, their representatives in the legislative body have already made agreements to approve them.
August 2011
In the first half of the year revenues generated by taxes increased by 18% compared to the same period in 2010.
Value added tax and income tax grew the most in the aforementioned period, by 18% and 34% respectively.
While overall growth was seen, decreases were observed in the amounts collected from taxes such as the tax on tobacco and the distribution of oil and its derivatives.
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