The reform package includes 4 types of measures: tax, non-tax, adjustments in expenditure and complementary measures. With this new vehicle tax, authorities expect to collect $20 million a year.
"In 2008 45.988 vehicles were registered, according to data from the Transportation Ministry. From these, 22.636 where new cars while the remaining 23.352 where used vehicles", reports newspaper La Prensa Grafica, which had access to a draft version of the reform.
If passed the new reform would create taxes for financial transactions, unproductive properties and newspapers.
Elsalvador.com reports that Carlos Caceres, head of the Ministry of Finance stated that "The President (of the Republic) has instructed the Ministry to evaluate a proposal acceptable to him and to society, that is politically acceptable and not damaging to the productive sectors and to the poorest people. "