Honduras: Tax Exemptions for Agriculture

A bill seeks to exempt from sales tax imports of agricultural machinery, cleaning equipment and other inputs required by the agricultural sector.

Monday, June 27, 2016

The draft bill will be presented by the Executive Branch, and according Wilfredo Cerrato, head of the Ministry of Finance, "... once the proposal has been sent to the legislature for study the conditions will be defined for justifying exemption from payment of tax.'This will be how we handle the issue for any sector, because we have to see what we get in exchange for the state sacrificing taxes' ... ".

See: "Honduras: Increase in Cost of Agricultural Machinery"

The proposal would make machinery and agricultural implements entering the country for activities in the sector exempt from the payment of 15% Sales Tax. Laprensa.hn reports that "...To date, only the entry of machinery for the production of milk is free from tax.  Under this proposal purchases of machinery used in other agricultural or livestock, sectors, cleaning equipment and other materials would be exempt."

Julio Aparicio, presidential adviser on agriculture, said "... 'This should be seen as direct support to domestic producers.  It is not fair that if you buy a tractor, a pump or irrigation equipment you have to pay the 15% tax. I think we're asking for something that is really fair and we are asking for it in order to strengthen the national agricultural system'."

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