Guatemala approves temporary fuel tax exemptions

The Congress of Guatemala has approved Decree 22-2026, known as the Temporary Emergency Tax Exemption Law for Fuel Consumers. This measure aims to reduce fuel prices to alleviate the economic situation of the population by exempting the Petroleum Distribution Tax (IDP) and Value Added Tax (IVA) for gasoline and diesel.

The exemption is expected to last until December 31. According to the Superintendency of Tax Administration (SAT), the tax benefits must be transferred to the final consumer price. Once the decree is sanctioned by President Bernardo Arévalo and published in the Diario de Centro América, the reduction will be reflected in service station prices. The SAT is currently making internal system adjustments to implement the change, while the Ministry of Energy and Mines prepares the necessary government agreement.

For consumers, the exemption of the IDP and IVA must be explicitly reflected on fuel purchase invoices. The IDP currently accounts for approximately 16.1% of the price for premium gasoline and 4.76% for diesel, while IVA constitutes 8.99% for premium gasoline and 10.2% for diesel.