Hector Dada Hirezi, Minister of Economy, said the country has had the obligation to eliminate this incentive since 1990.
"The continuity of this incentive had generated claims from some trading partners, mainly from the Dominican Republic, with whom El Salvador has had several trade disputes due to this issue. Government officials hope that with the elimination of the 6% to Salvadoran exporters, the disputes with that country can be resolved,” reports the article in Elmundo.com.sv.
The program allocates $ 28 million for a total of 21 instruments to benefit exporters.
Mario Cerna, Vice Minister of Commerce and Industry in the MINEC, said half of the resources will go to "non-reimbursable funds for co-financing of all types of business."
Laprensagrafica.com outlined in their article: "The rest of the money will be divided between efforts to promote export products and returns associated with the purchase of supplies and other components to boost the sector. In the coming years it is expected to maintain the amount of resources or increase them."
The ‘Drawback’, a 6% incentive for Salvadoran exporters, was removed on January 1st.
Exporters gathered at Coexport (Salvadoran Exporters Corporation) complain that the current proposal for promoting exports does not include a compensation for the removal of the incentive. They appreciate the inclusion of their suggestions for greater support to new exports, as well as increasing the number of exporting companies.
The regulation establishing export incentives for "draw back" substitutes is still pending approval in El Salvador.
During the inauguration of the Third Meeting of Exporters, the Exporters Corporation of El Salvador (Coexport) called on the Government to establish the dates for the entry into force of the regulations on the Law for the Promotion of Production, which establishes new incentives.
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