El Salvador: 13% Tax on Electricity Consumption

Businessmen have described as a "disguised tax" the decree by the Sanchez Ceren administration which adds a fee for social investment on to the energy rate .

Wednesday, June 29, 2016

The decree states that the new charge of 13% within the tariff will begin on July 15 and notes that "... the charge for social investment will be part of the fees in the system, which are transferred to the entire electricity demand in the different markets managed by the Transactions Unit and will be calculated quarterly as a dollar value per megawatt hour, equal to 13% of the value of the average price of Transferable Energy rates corresponding to the previous quarter ".

See "El Salvador: Concerns Over State's Ability to Pay"

Elsalvador.com reports that "...In the view of the president of the Salvadoran Association of Industrialists (ASI), Javier Siman, this is a new surprise sprung by the government, without having carried out any kind of consultation.'This is a tax on electricity, it is a tax in disguise ... we are surprised because we are in a dialogue with the Government and at no time was this new tax discussed, this only corroborates the double standards of the Government on the one hand doing one thing and on the other, doing the opposite'."

See decree in an article on Elsalvador.com (in spanish).

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