At the meeting of the block heads in the Congress of the Republic, which knows the weekly agenda of law initiatives, none were known related to temporary support for consumers; However, there could be a motion to discuss a project.
Some deputies consulted indicate that the issue could be “on pause” after the divisions that arose in the discussion in Plenary. Meanwhile, pressure is growing from different sectors, especially transportation, which warns of adjustments in services in the coming days.
In the session last Tuesday, April 7, there were differences between congressmen: some supported a diesel subsidy of Q8 per gallon and Q4 for gasoline, while others proposed the temporary elimination of the oil distribution tax (IDP).
Debate over fuel confronts deputies
Deputy Julio Héctor Estrada Domínguez, president of the Finance Commission, explained that there are two proposals in the Legislature: one maintains a subsidy program of Q8 for diesel and Q4 for gasoline for a period of 60 days. The other focuses on the elimination of the oil distribution tax (IDP) for the current fiscal year.
He clarified that the latter can have implications for the collection system, given that the destination of the taxes collected is already programmed. Nor is the elimination of the value added tax (VAT) on these products unfeasible.
In the subsidy initiative there is already an allocation of Q1.3 billion, which would be covered by cash balances and another part of the collection.
Estrada Domínguez explained that The latest geopolitical events “are putting pressure on the international price of a barrel of oil”.
In his opinion, there is an oil deficit of between 7 and 8 million barrels, which puts upward pressure on the price of crude oil, a raw material for the refining of petroleum derivatives, such as gasoline and diesel, which Guatemala imports, above all, from plants in the United States.
He warned that one of the risks is that other countries get involved “and that an international crisis is generated that could put upward pressure on the market.”
They expect Congress not to approve measures
Deputy Orlando Blanco, from the Will, Opportunity and Solidarity (VOS) bloc, assured that there is a risk that the Legislative I no longer know any of the proposalsdespite widespread discontent.
“Basically it seems that support is being lost. The Executive Body proposed a standby and there are some benches with persistent positions on the elimination of taxes, and the result of all this is that the State is not going to react to this situation,” lamented the deputy.
There are two proposals in the Legislature: one maintains a subsidy program of Q8 for diesel and Q4 for gasoline for a period of 60 days. The other focuses on the elimination of the oil distribution tax (IDP) for the current fiscal year.
Blanco announced that it is likely that no initiative will prosper in the Congress of the Republic, although others will be proposed.
He added that it is evident that the lack of agreements and the insistence of some groups on the elimination of taxes respond to the fact that “the idea is not to give any advantage to the government, that is, a recalcitrant opposition to what had already been agreed upon at some point.”
He reiterated that there are no conditions to discuss the issue of subsidies, so there will be no public policy to support consumers.