Industry Faces More Difficulties in Nicaragua

Retention of raw materials by the authorities of Customs and charges to businessmen by the mayors, are some of the problems that are affecting industrial companies in Nicaragua, in addition to the crisis and the rise in taxes.

Wednesday, September 11, 2019

Directors of the Chamber of Industries of Nicaragua (Cadin) reported that companies in the packaging, beverage and dairy industries are the most affected by the withholding of inputs made by the General Directorate of Customs (DGA).

Another of the difficulties faced by companies in the sector is the collection by the mayor's office. Sergio Maltez, explained to Elnuevodiario.com that "... When people want to get their products out of municipalities, the mayors force them to pay taxes that are not in any collection parameter, that is happening and the businessmen denounce it.

You may be interested in "Tax and Minimum Wage Tension

Camen Hilleprandt, president of the Nicaraguan Chamber of Commerce and Services (CCSN), said that "... to remove or withdraw goods is a right that all citizens have 'without distinction, whoever, a good should not be withheld if taxes are being paid and if the company is up to date with its obligations."

These denouncements are reported in a scenario of deep political and economic crisis that began in April 2018, which has caused a sharp downturn in the Nicaraguan economy. This joins the tax reform approved in February, which raises from 1% to 3% the income tax of large taxpayers.

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Tax and Minimum Wage Tension

July 2019

In Nicaragua, there is uncertainty because the government is reviewing the tax reform without the participation of businessmen, and because adjustments to the minimum wage could be made in September.

Weeks ago, it was reported that when the government's review of the tax reform in force in the country since February is completed, businessmen consider that no tax cuts will be made, despite the fact that production costs in the country have risen considerably.

Tax reform: Less Jobs

July 2019

Businessmen in the industrial sector in Nicaragua say that since the tax reform was implemented in the first quarter of the year, employment has fallen between 30% and 35%.

On February 27, 2019 was approved the amendment to the Law of Tax Concertation, which consists of raising from 1% to 2% income tax for medium enterprises with higher income.

Charge for Beverages Entering Nicaragua

May 2019

Businessmen in Nicaragua denounced that because of the tax reform approved by the Ortega regime, the tax burden on imports of all types of beverages has tripled.

Representatives of the Nicaraguan Chamber of Industries (Cadin) explained that before the tax reform that was approved last February came into effect, importers paid the tax on the total cargo of beverages in each import, but now it was ordered that this must be applied on the retail price of each of these products.

Crisis in Nicaragua: Textile Companies Closing

July 2018

The complicated situation happening in the country since mid-April has forced nearly 70% of SMEs in the textile and clothing industry to suspend their operations.

According to information from the Chamber of Industries of Nicaragua (Cadin), 30% of small and medium size textile and clothing companies that are producing are doing so at 25% of their capacity. The situation in the sector has led to the temporary suspension of eight out of ten workers. 

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