The export sector seeks a 4-year extension of the 6% refund, which expires at the end of 2010.
Both the Corporation of Exporters of El Salvador (COEXPORT) and the Salvadoran Association of Industrialists (ASI) are requesting a 4-year extension of the 6% refund or drawback for exporters from the new government.
Industrialists and entrepreneurs have criticized the abrupt elimination of the electricity subsidy by the government.
The Government of El Salvador had committed to a reduction of the subsidy in parts, the last reduction to be made made in October 2009. This benefit applied to consumption of more than 99 Kw/h. However, it was announced yesterday that it would not be able to continue with it, and that the regular rate would be charged beginning this month.
The case was presented before an international tribunal in France, which the parties had established to settle conflicts that might arise in the preparation of the LaGeo.
Italian company, Enel, which partnered with the Salvadoran government in the operation of the LaGeo geothermic electric generating plant, took the government to court internationally for $120 million for not allowing it to hold the majority of shares that corresponds to the investments carried out, based on the contract between the two parties.
Business will soon pay 38 percent more for electricity in El Salvador. The private sector is negotiating with the government over the stages in which the increase will be applied as the subsidy is gradually eliminated.
El Salvador President Antonio Saca says the difference between the real cost of energy and the amount the privat sector ccurrently pays has widened due to rising energy costs.
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