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.
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.
Receive more news about Auto Industry
Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.
We are an U.S. Import Export Trading Firm based in Columbia Maryland since 1997: Specializing in import, export brokerage, export management, international business marketing consultation. Consultant Services: An international trade specialist...