With the reform to the law on Tax Concentration non-resident investors in the country will have to pay 15% instead of 10% on income earned from capital.
According to Juan Sebastian Chamorro, executive director of the Nicaraguan Foundation for Economic and Social Development, the new reform "... is a positive thing for the country because it will generate an increase in the collection of such taxes but is a negative blow to natural and legal non residents because the Revenue Department will no longer deduct 10% on capital transfers, but rather 15 %. "
A decrease in exports of agricultural and industrial goods and rising imports of value-added goods reflect the country's transformation towards a service economy.
In the first five months of the year imports of agricultural and industrial goods grew by only 3.3% compared to the same period in 2013, while imports of consumer goods composed of non-durable goods (food), semi durable goods, housewares and fuel , increased by 9.3% in the same period.
Meanwhile the purchase of consumer goods grew by only 9%, which is attributed to the higher added value in domestic production.
Laprensa.com.ni reports that "Nicaragua’s imports have grown at a slower pace than its exports, which helps to stem the growth of the trade deficit. Between January and November last year the country invested $5.307 billion in the purchase of goods and products, representing a rise of 11.7 percent compared to the same period in 2011. "
Capital goods imports (machinery and equipment) increased 15.4% in the first 7 months compared to the same period of 2009.
According to statistics from the Bank of Guatemala (Banguat) the purchase of machinery for the agricultural sector, textiles and telecommunications reached $ 1,232 million compared to $ 1,068 million in 2009.
In January 2009, capital goods imports decreased by 29.3% over the same period the previous year.
During the first month of 2009, there were $ 43.8 million in capital goods imports registered, while there were $203.5 million imported during the same month last year.
An article in Sigloxxi.com detailed the situation: "Just in the import of machinery and industry equipment, telecommunications and construction, the decline was 29%; for transportation it was 33.2% and 13.9% for agriculture, according to Banguat."