Given the call for a day of protests over the rise in fuel prices, whose value exceeds Q40 per gallon of gasoline and diesel in the local market, the Executive refines a possible solution that is discussed by representatives of several institutions.
Representatives of the Ministries of Energy and Mines, Finance and Economy, as well as the Superintendence of Tax Administration (SAT), prepare a temporary proposal to mitigate the effects of the international rise in oil prices on the domestic market.
Sources consulted by Free press They explained that during the morning and afternoon of this Thursday, July 23, the fiscal scenarios will be analyzed, including the amount and validity of a temporary subsidy, control measures and social compensation actions, especially for people with limited resources.
President Bernardo Arévalo plans to announce tomorrow, Friday afternoon, the temporary measures to address the rise in the prices of oil derivatives.
He would also announce the support that he will request from the Congress of the Republic, since it would be necessary to approve budget modifications to finance the temporary subsidy.
The Finance Commission of the Congress of the Republic hopes to know the Executive’s proposal to begin the parliamentary debate and speed up the approval process.
Government rules out eliminating fuel tax
The emerging support measures consist of applying a subsidy, as was done between May and July, for consumers.
In addition, it was learned that representatives of the Technical Budget Directorate (DTP) participate in the meeting in which they determine the percentage of execution of the different spending items of public entities to identify budget spaces and use them in the proposal that will be announced.
The cash balances available to cover the program are analyzed and the financial structure that will be transferred to the Executive is defined.
Also ruled out is the possibility of promoting the temporary elimination or suspension of the oil distribution tax (IDP), which is Q4.70 per gallon of premium gasoline, Q4.60 per gallon of regular gasoline and Q1.30 per gallon of diesel.
The final version of the initiative will prioritize urban and extra-urban collective passenger transport, as well as the transportation of goods.
Once the proposal is completed, it will be reviewed by the authorities of each of the institutions and presented to the president.
The first subsidy program was applied between May and July of this year, for which Q2 billion was allocated.