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Latin America Investment News on Viva Tropical

Guatemala Least Favorite Country for Investments in Mining

Article Summary:

In Guatemala there are many unfavorable factors for mining investors to surmount and places the country in an unfavorable position against Chile, Peru, and Mexico in the mining market, says a study by Central American Business Intelligence. Among the leading factors noted include country insecurity, inconsistent environmental laws, and poor interpretation of regulations.

Photo Credit: Prensa Libre

Original Article Text From Prensa Libre via Google Translate :

Uncertainty Reduces Investment

Among the factors that the report highlights are Cabi rising uncertainty, insecurity, inconsistency in environmental laws, as well as doubt about the interpretation of the law.

Upon comparison with traditional mining countries such as Chile and Brazil, Guatemala lacks the necessary political stability and a clear tax regime to promote investment in mineral exploitation.

Despite the unfavorable data, at least nine companies have complied with all requirements and in 2014 and 2015 will begin with the phase of exploitation of minerals, he said.

“It means that the country has potential and should be leveraged to encourage investment,” said Paulo de Leon, an analyst at Cabi.

The study suggests a revision in the mining taxes in other countries in Latin America, where “they have clear tax laws” for the collection of taxes.

“In Guatemala are estimated at 40 percent the tax burden in the mining sector, including taxes and royalties”, said the study.

According to De Leon, this means that the tax burden is higher than other Latin American countries.

Cabi stressed that the country’s competitiveness in the mining sector has declined in recent years, contrary to the trend of other nations with less potential.

To reverse this situation, De Leon suggested seeking a tax system simple to operate and to ensure certainty for investors.

Link to Original Article:

From Prensa Libre

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