Coffee: Export Tax Remains Solid

The Ortega administration rejected the request of Nicaraguan coffee growers, who requested that the tax of one dollar per quintal exported be waived for the 2020-2021 harvest.

Thursday, October 17, 2019

The decision to start charging from next year was published by the Ministry of Development, Industry and Commerce (Mific) in the October 15, 2019 edition of La Gaceta.

The funds collected from the producers will be managed by the National Commission for the Transformation and Development of Coffee Culture (Conatradec), as stipulated in the Law for the Transformation and Development of Coffee Culture, which was amended in August 2019.

You may be interested in "Crops in Central America: Main Figures in 2018"

Aura Lila Sevilla Kuan, president of the National Alliance of Coffee Growers of Nicaragua, told Laprensa.com.ni that for Arabica coffee "... the taxable base with the new reform was 100 dollars per quintal and this calculation is made with the three positions of the last cycle, and the ancestor was handled well, then in the end we are stuck with a dollar tax; but our position is not to pay any tax for the situation we are in."

Regarding the destination of the funds collected, the article adds that "... Producers point out that up to date it is unknown in which the Government has invested the millionaire fund contributed by producers, given that since December 2013, when they began to withhold that contribution, has not provided a detailed report on the objectives achieved."

According to specific figures, from January to September 2019 the country has exported 152 thousand tons of coffee, of which 149 thousand are of the variety gold or Arabic, representing 98% of the total sold.

Interested in detailed data on Central America's agriculture industry?

Contact us:








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Coffee: Controversial Law Reform Approved

August 2019

The National Assembly of Nicaragua approved the bill that establishes that when the price per quintal of grain exceeds $100, producers must contribute one dollar to a commission that will watch over the incentives of the sector.

The changes to the Law on the Transformation and Development of Coffee Farming were surrounded by controversy, since the previous law mandated that the National Commission for the Transformation and Development of Coffee Farming (Conatradec) should be composed of nine representatives of the private sector, all proposed by the same producers or businessmen.

Coffee in Central America: Different Realities

May 2019

While producers in El Salvador predict that the local crop could be extinct in the next two years because of falling international prices, other countries in the region place grain at more favorable prices.

Each country's realities are different, as there are several differences that are reflected in the amounts exported and in the average prices at which the grain sells abroad.

The Renovation of Coffee Plantations That Never Happened

July 2016

More than two years after the adoption of the law to transform coffee production in Nicaragua, producers claim that bureaucracy has prevented the much awaited renovations from materializing.

A law passed in December 2013 created the National Commission for Transformation and Development of Coffee Production (Conatradec), which was to be responsible for executing a plan for the renovation of plantations after the rust crisis in 2012, aiming to raise the sector's average performance "... from 11.1 to 20 hundredweight per acre."

Coffee Exporters Reject Production Tax

October 2013

The tax promoted by the government of Nicaragua on coffee producers has also been rejected by exporters of the grain.

The bill promoted by the government to charge producers between $1 and $5 per quintal of coffee in order to finance the National Development and Transformation of Coffee Plantations will not directly affect the export sector as it is only producers who have to pay the tax, however, they believe that this is not the time to establish such fees.

 close (x)

Receive more news about Agriculture & Food

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Looking for Importers and distributors of furniture

Mexican manufacturer of office furniture seeks importers and distributors interested in dealing their products in Central America.
PM Steele is a 100% Mexican company, with more than 67...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Jul 10)
Brent Crude Oil
43.4
Coffee "C"
96.9
Gold
1,802
Silver
19.02