El Salvador Businesses Oppose New Taxes

The private sector is opposed to the conditions in the third reform package the outgoing government intends to implement, claiming that state expenditures should be reduced first.

Thursday, May 15, 2014

More control of public spending and no new taxes are the demands from employers to the government, which aims to increase government revenues with a third reform and the issuance of $800 million in bonds.

"The leaders of business organizations warned yesterday that the new tax reform, the third promoted by the Government, could hinder economic activity because the country is growing very little. Apart from the reforms, employers also referred to the placement of $800 million in bonds, which the Treasury is also promoting. They warned that this measure is a superficial solution to the liquidity situation in the treasury," reported Laprensagrafica.com.

"The entrepreneur Ricardo Poma, president of Grupo Poma, warned that it is not a good time to push for further reform. 'The economic situation and growth of the country are very difficult at this time; meaning that the idea of more taxes and an additional burden for many employers is difficult to accept, especially in a time where no one can see that there has actually been any strict controls over expenses."



More on this topic

More Taxes: An Idea That Appeals to Governments

September 2020

In this scenario of economic crisis, falling tax revenues and the need to finance recovery programs, in Guatemala and Costa Rica it is already proposed to increase current taxes and create new ones.

Guatemalan authorities are already beginning to discuss the fiscal policy they will apply in 2021, when the economy will have to face the effects of the economic crisis generated by the covid-19 outbreak.

Guatemala's Financial Present and Future

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A review of the fiscal outlook in Guatemala, the difficulties encountered and possible solutions for addressing these challenges.

From the Introduction of the study by the Foundation for the Development of Guatemala (FUNDESA):

In any country, taxation is critical to ensuring the proper functioning of the state.

Alarm in El Salvador Over Tax on Financial Transactions

May 2014

Warnings have been given that the tax in the approval process in the Legislature would create more evasion affecting all sectors of society.

The new tax would be of 0.25% on financial transactions exceeding $750, applied to the deposit holders who ordered payments or transfers and financial entities performing loan disbursements of any kind.

More Taxes are a Good Thing ... For Governments

November 2011

And apparently for bureaucracies in general, including those of international organizations; an "expert" from the Inter-American Development Bank is supporting tax reform in Costa Rica.

Although officially the IDB "does not advocate a tax burden or specific tax policy," one of its officials warmly supports the project to increase the tax burden to support the Costa Rican economy, to the point of suggesting that the tax burden be similar to Argentina’s.

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