Fiscal Policy Reform: Guatemalan Municipal Tax Code
The cost incurred by the Superintendency of Tax Administration (SAT) in all aspects covered by the administration of the taxes that it administers is of fiscal, economic and social interest, since these costs represent a deduction of the gross yield of each tax. It is therefore important to make an effort to minimize this cost - without undermining the related efforts to strengthen tax collection. Simultaneously, the administrative cost estimate can play two additional roles:
- Identify those taxes whose cost represents a relatively high proportion of their gross receipts; If so, it may be advisable or repeal such tribute or modify it so that its net collection increased.
- Allow international comparisons as a useful tool for tax administrators and for those who forge tax policy, thus pointing to areas where administrative efficiency is needed.