Thursday, May 8, 2014

Guatemala raise taxes and increase social spending?

From Reuters
Guatemala is considering the possibility of earning taxes from the sale of opium poppies to help fund drug prevention programmes and other social spending, the country's interior minister said on Wednesday.
The Central American state is looking at ways to legalize poppy and marijuana production, part of a broader shift in attitudes across Latin America away from the huge financial and social costs of the U.S.-backed war on drugs.
"That is one idea that has been raised," said Mauricio Lopez Bonilla, a retired lieutenant colonel who served with Guatemala's special forces, when asked if the government would tax the sale of poppies if it opted to allow their cultivation for medical purposes.
"That option would mean raising taxes, fundamental resources for prevention, resources that could be used by the Guatemalan state for social development," he told Reuters in an interview.
I'm sorry but I can't take this seriously. If there is one thing that Guatemala is committed to above all else, it is not raising taxes. If push comes to shove, however, they might be open to raising taxes on consumers and poor people.

And, I guess I would have to add that the second thing that the Guatemalan government is against is increasing spending on social development. I'm open to some serious drug reform but it's just unbelievable that Lopez Bonilla is going around touting the potential of raising more tax revenue and spending it on social development.

I'm sure there are other important takes on Lopez Bonilla's comments but his statements just seem so out of touch with Guatemala.

No comments:

Post a Comment