Arévalo Rejects Claims of Congressional Bargaining Over IUSI Tax Reforms and 2027 Budget

Bernardo Arévalo has rejected claims that he struck a congressional bargain to approve reforms to Guatemala’s Single Property Tax Law, known as IUSI, in exchange for support for the proposed 2027 budget.

Speaking at a news conference, the president said his decision to sanction Decree 18-2026 followed an analysis of what the legislation contained and was influenced by the support it received in Congress, not by negotiations. The 2027 budget proposal was presented on August 2.

Arévalo said the law had faced questions over possible constitutional problems and missing articles before he approved it. He argued that any person or group with legal objections could file a challenge once the law entered into force. “There are doubts about constitutional issues or injunctions; what we did was sanction it. Once the law enters into force, anyone with a legal remedy can present it, and if not, the law continues its course,” he said.

The decree was published in Guatemala’s Diario de Centro América on August 28, removing the immediate question of whether the president would veto or approve it.

Analysts consulted by *La Hora* offered a different interpretation. They questioned whether the decision was driven more by political than technical considerations, suggesting that Arévalo wanted to improve relations with congressional lawmakers ahead of the 2027 budget debate and strengthen his support among urban voters. The reforms include an exemption from IUSI payments for properties used exclusively as residential homes and mixed-use residences, while commercial properties retain a tax scheme.

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There are doubts about constitutional issues or injunctions; what we did was sanction it. Once the law enters into force, anyone with a legal remedy can present it, and if not, the law continues its course.