The intention to approve the fuel subsidy as a national emergency was far from being realized in the session of this Wednesday, July 29. Neither party opted in favor of the subsidy proposed by the Executive.
The apparent mishandling of the first subsidy approved due to the emergency cost of gasoline and diesel made some deputies, including former allies of the ruling party, hesitate to give support in the first instance to the proposal presented by Bernardo Arévalo last Monday.
The legislative session focused on other issues proposed by various groups, including reforms to the law of the Single Tax on Real Estate (Iusi), which was repealed for private homes and reclassified for commercial properties, as well as an extension until December to the payment of the Tax on Vehicle Circulation (ISCV),
The deputies also responded to the request of a group of military veterans who asked a 36-month extension to the Comprehensive Development Law to update the payments that the Ministry of Social Development (Mides) must comply with.
Luis Contreras, president of Congress, responding to requests from the ruling parties and other groups that yesterday also presented proposals to alleviate increases in fuel prices, called a new session of block heads for this Thursday, at 2 p.m., with the aim of building consensus.
For this session, in addition to the deputies, the attendance of the Finance Ministers is expected; Economy; Energy and Mines; as well as the head of the Superintendence of Tax Administration (SAT), to explain the technical details that support the Executive’s request.
If this meeting allows positive results in favor of the Government, a new plenary session would be called for next Friday, July 31, where the subsidy suggested by Arévalo would be promoted as a matter of national urgency.
The day
During the plenary session, Congress issued three decrees that were not part of the official requests; On the contrary, they could harm the Government and its financial planning to conclude the year.
A new reform to the Comprehensive Development Law was approved, so that the Ministry of Social Development finishes paying military veterans the contribution of Q36 thousand, since some had stopped receiving payment within the terms of the original law.
The deputies also eliminated the Single Property Tax (IUSI) for properties that function as homes, a proposal that was promoted by a multiparty agreement in which the ruling party was not included.
Finally they postponed the date to pay the Vehicle Circulation Tax which was this July 31, with legislative approval now the payment of this tax reaches December 31 of this year.
However, when the agenda reached the topic of subsidies, no one was convinced to discuss it and the session was suspended due to lack of quorum. Last Tuesday, President Arévalo asked deputies of the Permanent Commission of Congress for support to promote the subsidy, a proposal that reached the plenary session without any agreement.
Deputies from Cabal, Visión con Valores (Viva), and the dissidents of the ruling party who promote the Raíces pro-formation committee, presented counterproposals that now compete with the official one.
It should be a priority
Deputies Elmer Palencia, from the Valor bloc; and Orlando Blanco, from Voluntad Oportunidad y Solidaridad (VOS), both members of the Board of Directors, highlight that the fuel crisis must be a priority.
“Several things were approved, but the most important thing was to address the emergency, and it was not attended to. The Valor bloc was willing to support initiatives regarding fuel issues, but it is something that Congress leaves pending,” Palencia lamented.
For Palencia, it is necessary that agreements be reached in the following meetings. “One more week without something being approved to support the people of Guatemala, it is something that the neighbors and the population end up suffering due to the high costs,” he added.
For his part, Deputy Blanco recognizes that all parties are aware of the situation, but points out that the complexity lies in the variety of the proposals.
The deputy recalled that there are groups that have already proposed that the subsidy cover all fuels, others are seeking changes in the subsidy amounts, and there are deeper suggestions that go to the suspension of certain taxes.
“Now it is again up to the board of directors and the block heads to discuss to see the alternatives in the discussion of price escalation, here, again, there is consensus on seeking a solution, but there are no agreements on what route should be followed,” he concluded.
“It is not a failure”
Law initiative 6801 seeks a budget readjustment for Q3,480 million, seeking a contribution of Q12 per gallon of diesel and Q3 per gallon of regular gasoline.
During the session, which lasted more than seven hours, the ruling party did not at any time seek any motion to try to have the proposal approved as a matter of national urgency.
Victoria Godoy Palala, leader of the ruling party, said that the session was not a failure, because the building of consensus continues.
“It is not a failure because we did not even put it to a vote, what we are looking for is consensus, it is a complicated issue that does not have an easy answer, we are looking for consensus because we require 107 votes – to approve it as a matter of national urgency – and today the ruling party has 8,” acknowledged the deputy.
Godoy Palala, however, described himself as optimistic for the session of block heads, where he sees an opportunity to obtain the necessary votes for a future legislative session that will allow the official proposal to be approved.
“We let the subsidy proposal be read, we let it continue on its way, we already have a session with block heads and with some ministers, because there are doubts surrounding the project,” he indicated.