Sergio de la Torre, The Minister of Economy announced that now "Iprima can come into effect".
The official version, according Prensalibre.com, reads: "The Iprima was created with decree 10-2012, Tax Update Act to replace the import tariffs on vehicles, and the Ministry of Finance argues that the Iprima will eliminate discretion and gives legal certainty in order to define the basis for calculating the tax. "
However, importers of used vehicles announce the introduction of a constitutional challenge, because, says Nelson Elliott, executive director of the Union of Importers of used vehicles, this new tax will squeeze out used car imports.
The Iprima decree establishes the limitations on import vehicles. Subsection c) prohibits the entry of vehicles that are damaged and prohibits their circulation.
The Iprima taxes at rates ranging from 5% to 20% ground vehicles imported into the country, or those assembled in the national territory. Freight transport, with maximum load greater than 2.5 tonnes, tank vehicles, refrigerator trucks and garbage collectors are taxed at 10%, as opposed to the 5% paid currently.
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The Ministry of Economy proposed the elimination of the 5% tariff on imports of wheat flour.
The finance minister, Erick Coyoy, said the measure seeks to alleviate the increased price in commodities on the international market.
"The proposal must be submitted and endorsed by the Council of Ministers of Economy of Central America (Comieco)," stated the article Elperiodico.com.gt.
Central American trade authorities authorized Guatemala to impose zero tariffs on 10 products as a contingency measure.
The Council of Ministers for Central American Integration (Comieco) said the measure would reduce the impact of high food prices. Comieco did not say what products were involved.
Nicaragua will eliminate the 35% tax on Colombian imports, which created a a disadvantage to local businesses compared to the rest of the region.
The abolition of the tax will be effective in a few weeks and follows an agreement between businesses and the government.
Jose Adan Aguerri, president of the Superior Council of Private Enterprise (COSEP), said that the tariff be suspended by way of a reform initiative to be adopted in Parliament after 9th April.
The Ministry of Finance in Guatemala has accepted demands made by the Union of Used Vehicle Importers and announced changes to the draft Tax Update.
The government has backtracked on its plans for fiscal reform in light of strong reactions from used-vehicle importers. They suggested using the same system for calculating the tax on entry of used cars into the country, and permitting entry of used cars up to 15 years old, rather than the 7 years proposed by the Ministry of Finance.