The productive sectors have indicated that the state budget approved for 2015 is underfinanced and will force the government to raise taxes or issue more debt in order to comply with it.
The approved general budget for the nation is $4.824 billion an amount which according to the private sector can not be covered by current tax revenues, therefore in order to raise this amount there must be either be cuts made to services such as subsidies or social programs, increases or creation of more taxes, or more debt taken on.
The private sector has proposed creating development zones with specific tax laws and tax free status in order to encourage local and foreign investment.
Following a concept created by economist Paul Romer and implemented in cities such as Hong Kong, and proposed in Honduras through the passage of a law last year, Salvadoran businessmen are proposing 29 law reforms in order to create development zones which have their own laws to enhance the competitiveness of companies located within them.
"We cannot continue to be a region where trade is moving at 15 kph when developed countries have cargo moving at 60 kph."
Employers believe that border points and customs offices in Central America are limiting their work and reducing their competitiviness despite the fact that they have been selling products to each other for over a decade.
The Supreme Court has ruled that the collection of a 1% tax over revenue as minimum payment for income tax is unconstitutional.
The ruling came months after the submission of a claim of unconstitutionality "through a legal team set up by the National Association of Private Enterprise (ANEP), along with union representatives and other affected MSMEs," reported Laprensagrafica.com .
In 1999, government spending on subsidies was $13 million, a figure which has multiplied 30 times, reaching $471 million in 2012.
In an event organized by the Salvadoran Chamber of Consulting Firms (Camsec) and the Union of MSMEs, union president, Jorge Daboub, revealed that while in 1999 the country spent $13 million on payments of subsidies, specifically for liquefied gas oil, by 2012 they had increased to $458 million, which represents an increase of 3523.1%.
In El Salvador, many argue if Congress should establish the basic rate of fixed telephony.
An article in Elsalvador.com remarks that "economic analysts and representatives of the private sector argue that lawmakers shouldn't regulate prices, as they intend to do with a decree to lower the basic fee for fixed telephony. Manuel Enrique Hinds considers the Assembly should not be lowering or increasing rates, as that is one of the functions of the Telecommunications Superintendence".
At a meeting in San José, Costa Rica, the Federation of Chambers of Commerce of the Central American Isthmus (Fecamco), "unanimously endorsed Honduras' elections" and asked the European Union to recognize them.
The private security services sector registered an $18 to $20 million decrease in sales in the last year.
The chairman of the Chamber of Commerce and Industry of El Salvador, Jorge Daboub, indicated in an article in Elsalvador.com that businesses were spending about $600 million a year before the economic crisis. Current investment has been reduced to $580 million a year, "this means that companies have had to make adjustments in private security recruitment."
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