Energy: Dumping in Nicaragua

The private sector believes that Ortega's creation of new state-owned companies to exploit oil and import and market gas and fuel will generate dumping in the country.

Friday, February 14, 2020

f="https://centralamericadata.com/en/article/home/Ms_control_sobre_el_mercado_energtico" target="_blank">On February 11, the Law creating the Nicaraguan Gas Company (Enigas), the Law creating the Nicaraguan Company for hydrocarbon storage and distribution facilities (Eniplanh), the Law creating the national company for the exploration and exploitation of hydrocarbons (ENIH) and the Law creating the Nicaraguan company for the import, transportation and commercialization of hydrocarbons (Enicom) were approved as a matter of national urgency.

After analyzing the situation, the business sector has expressed the opinion that the new companies will generate dumping in the local market, since the state-owned companies will be exempt from taxes.

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Jose Adan Aguerri, president of the Superior Council of Private Enterprise (Cosep), told Laprensa.com.ni that "... these new companies will be free to pay any tax, which puts them at a clear advantage over the competition. These four companies 'are exempt from the payment of any type of tax, fee, royalty, rights, royalties, contemplated in the national legislation, whether ordinary or special, whether national, municipal or of any other type."

Aguerri added that the companies will also be exempt from "... 'all duties and taxes on the importation or local purchase of machinery, equipment, inputs and other goods, what we are seeing is this involution towards public companies, what we are seeing is a new unfair competition that will have the companies that are in this sector...'."

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