*Guatemala’s President
Bernardo Arévalo has announced temporary fuel tax exemptions in an attempt to soften the blow of high fuel prices due to the conflict in the Middle East.
“We know that these have not been easy days for many families due to high fuel prices - a situation that affects us all and stems from circumstances beyond our borders and outside our control, but which has a direct impact on our economy,” said Arévalo, following the publication of Decree 22-2026 – an emergency temporary tax exemption act for fuel consumers - in the official gazette. Under the decree, the distribution of crude oil and petroleum-derived fuels - including the domestic distribution of premium gasoline, regular gasoline, diesel, and gas oil - is temporarily exempt from the petroleum distribution tax (IDP), while the importation and sale within national territory of premium gasoline, regular gasoline, diesel, gas oil, and fuel alcohol are temporarily exempt from value-added tax (VAT). The decree includes temporary tax benefits and provisions to ensure that its effect is reflected in the price paid by the end consumer. The exemptions take effect from today (1 October) and will apply until the end of the year. As of 1 January, the affected products will once again be subject to the IDP and VAT in accordance with their standard regimes and rates.
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