Coffee Exporters Reject Production Tax

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

Thursday, October 31, 2013

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.

"It is difficult to contribute when you're experiencing financial difficulties. Production has fallen because of the ravages caused by rust and production costs are higher than the price being paid on the international market ($106.60 per quintal). Therefore they are already losing out and on top of this they want to retain a portion," said Jose Angel Buitrago, president of the Coffee Exporters Association of Nicaragua (EXCAN).

After several meetings of the sector with the government a consensus was almost reached on the creation of this fund, however, negotiations were suspended and the executive sent the bill to Congress, the official lamented.

According to the chief of the Superior Council of Private Enterprise (Cosep), Joseph Adam Aguerri, this is not the first time this has happened, but he is confident that Congress "will use the query mechanism in order to end up reaching a consensus" and avoid affecting the industry."

More on this topic

Coffee: Law Reform Tailored to the Government

August 2019

The Nicaraguan government seeks to deprive the business sector of the power to propose its representatives to the National Commission for the Transformation and Development of Coffee Farming.

President Daniel Ortega presented an initiative to the National Assembly to modify the Law for the Transformation and Development of Coffee Farming, which among the changes includes that the Members of the Superior Council of Private Enterprise (Cosep) do not have the power to propose their representatives to the National Commission for the Transformation and Development of Coffee Farming (Conatradec).

Expulsion of US Officials Affects Exports

June 2016

The non-renewal of export licenses is the first in a series of negative consequences for Nicaragua for the expulsion of two customs consultants and academics who came to discuss the project of the Grand Canal.

Nicaragua has been left with unrenewed certificates for exports of coffee and textiles to the United States after the government decided to expel three US government officials.

Nicaragua: Excessive Bureaucracy in Exemptions for Agriculture

January 2015

Producers are complaining about a lack of agility and excessive paperwork in the process to request tax exemptions for the purchase of equipment and farm machinery.

Agricultural producers argue that they can not easily access the exemptions for the purchase of equipment which is established in the recently passed Tax Act.

Drop in Coffee Prices Sharpens

October 2013

The abundant harvests in Brazil and Colombia have pushed down the price of the grain, which could reach less than $100 a quintal.

"This puts Nicaraguan coffee in a difficult position as it has long been the main export product of Nicaragua ..." reported

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