Electricity: Marketing Tax Would be Eliminated

The reform proposal to Nicaragua's Energy Stability Law contemplates the elimination of the tax on the purchase and sale of electricity for users who generate their own energy and decide to market their surpluses.

Thursday, November 28, 2019

On November 21, the Ortega administration sent to the National Assembly the initiative, which seeks to exonerate from the marketing tax, generators who sell their surplus electricity to Disnorte-Dissur.

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Laprensa.com.ni notes that the proposal states "... that a second paragraph be added to article 32 of the said law, to be read as follows: The sale of surplus electricity delivered by the distributed generator to the distribution network and which is committed by means of an energy purchase and sale contract with the distribution companies shall be exempt from the application or withholding of all types of taxes, rates or special contributions, given that the distributed generator is not an economic agent."

Patricia Rodriguez, energy expert, explained that "... with this initiative the distributed generator is not going to apply the tax to the surplus of energy, 'when you sell something you apply a tax, then that will no longer apply'."

Other analysts agree that the proposal is aimed at encouraging the market for distributed generation or generation for self-consumption.

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