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."

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