As of October, the government had collected Q10 billion more than expected, but the resources are already committed

Until this Friday, November 25, the amount of accumulated tax collection already exceeded Q76 billion and it is projected that the closing of income for the year will be around Q86 billion, which would mean about Q10 billion more, compared to the goal set for this year.

The Superintendence of Tax Administration (SAT) reported that, as of October, net tax revenues totaled Q74,634.1 million, 15.8% more than what was programmed on that date (Q10,186.3 million) and 16% more than what was received in the same month of 2021.

The detail indicates that taxes on foreign trade (import value added and customs duties) had an extraordinary execution of 30%; while that of internal taxes was 110.3% compared to what was expected.

Among the latter, the income tax stands out with 17% over the forecast, the domestic value added tax (VAT) with 5.3% more, as well as the Solidarity tax (ISO), with an extra collection of 7%.

Saúl Figueroa, who is in charge of the Vice Ministry of Revenue and Fiscal Evaluation, indicated that the tax burden is expected to reach 12 percent this year (in relation to gross domestic product, GDP), and considering the increase in collection of taxes, certain extraordinary payments will be covered, which could reduce the projected cash balance for 2023.

committed resources

For now, the projection released this Friday, November 25, indicates that the execution of state spending would be around 94%, which would mean about Q105 billion. However, in the Integrated Accounting System (Sicoin) of the Ministry of Finance (Minfin), the execution of the expense is 80.89% until this Friday for an amount of Q91 thousand 320 million, and in December the disbursements increase, especially for compliance with the payment of the Christmas bonus to public sector workers and passive classes.

And the extraordinary collection that the Government will achieve in this fiscal year is already compromised, because, for example, a strong disbursement that it will have to make is for the company Teco Guatemala Holdings LLC for US$46 million, that is, about Q354 million, which were not contemplated .

According to the vice minister, this payment must be made, after the signing of the Transition contract between the State of Guatemala and the company Teco Guatemala Holdings LLC to put an end to a controversy.

In addition, extraordinary expenses are considered to be anything that is not considered within the current budget and compliance with the demand was not scheduled. “This extraordinary payment will be one of the strongest,” he specified.

From the point of view of public finances, this payment reduces the availability for other programs and projects, but he clarified that it is a commitment acquired with international organizations and was an arbitration panel.

In addition, he was asked about other expenses such as the subsidy for petroleum derivatives such as diesel, to which he replied that the proposals are still being analyzed by the Ministry of Energy and Mines (MEM), but a program of medium and long terms, more than the situation, although it could not take effect this year, except for what has already been approved by Congress.

Annual operative plan

In the part of the SAT board of directors, where Figueroa is the substitute president, he affirmed that the Annual Operating Plan (POA) for 2023 will begin to be discussed, based on a defined institutional strategic plan.

The POA should be discussed by the directors Alejandro González Portocarrero and Adriana Estévez Claveria (who ran as a candidate for Comptroller General of Accounts and was among the nominees in the recent election), to seek mechanisms to reduce non-compliance in the payment of taxes; maintain the growth of tax collection in all sections with the established instruments, and details of the execution of all units will be known shortly.

This week Congress published decree 54-2022, “Law of the general budget of income and expenses of the State for the fiscal year 2023”, which will be in force for the year 2023 for an amount of Q115 thousand 443 million 737, which was approved last November 9.

Of this amount, the budget will be financed with Q90 thousand 971 million from current income (Q86 thousand 247 million from tax income, which must be collected by the SAT) and for January 2023, the evaluation of Superintendent Marco Livio Díaz Reyes is scheduled, procedure established in the Law, for which all variables will be taken into account at the close of the current fiscal year.

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