Poverty Over: tax

Although classified as a middle-income country Guatemala has the fifth highest rate of chronic malnutrition in the world. The poorest pay a far higher proportion of their income on the equivalent of VAT and other indirect taxes, while the business elite enjoy generous tax incentives. Some unscrupulous businesses use international financial secrecy to dodge paying tax in Guatemala. We estimate that Guatemala may have lost around US$92m in 2007. This is equivalent of two-thirds of the entire annual budget for the fledgling welfare system. See how this money could make a difference for malnourished children in Guatemala.