Don’t Pay Taxes, Invest In Infrastructure

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In Guatemala officials recently proposed that private companies invest in the construction of local public works to an equivalent amount to what they normally pay in taxes.

 

The proposal by the Foundation for the Development of Guatemala (Fundesa), to be officially presented in October draws on ideas from Peru.

In 2014 investments were made using this mechanism worth some 600 million Peruvian dollars in sectors such as public sanitation, road infrastructure, public health, transportation, education, among others.

Elperiodico.com reports that the executive director of Fundesa, Juan Carlos Zapata,   said there is a need to speed up the decentralization of resources at the municipal level and reduce social conflict. Inside the country, companies  pay taxes that end up in a Central Government fund but are never returned to the town.

An analyst at the Center for National Economic Research, Hugo Maul, thinks the concept is a good one because it brings the supply of infrastructure closer to the specific needs of a community and also creates the possibility of the population auditing the company executing the works.

 

 

 

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G Bernard Ray

G Bernard Ray has a great love for travel and adventure. He has visited over a dozen countries and lived in four. Originally from the Southeastern United States, he discovered the allure of travel at a young age. He is also a fiction novelist specializing in the horror, thriller genre. He enjoys Latin dancing, writing, cooking, and has an affinity for hats.