New Tax Puts $300 million Investment In Doubt

A new security tax, which aims to raise $80 million, calls into question a $300 million investment and could result in the loss of 15,000 jobs.

Wednesday, July 6, 2011

This is according to Jesus Canahuati, Honduran business leader and former president of the Honduran Maquila Association, who added that "several investors who were ready to come to the country have now halted their plans," due to uncertainty generated by the new tax.

He further claimed that "businessmen were 'used' by the congressmen who painted a different picture to what has finally been approved and is about to become law."

The Honduran businessmen stated that they are not opposed to paying a fee to support the fight against crime, but "we do not agree on irresponsible investment", said Canahuati.

The tax aims to raise $400 million over 5 years to be allocated to combat organized crime.



More on this topic

Maquila: More production in Honduras

October 2018

Basically explained by the rebound in external demand, the Gross Production Value of the maquiladora industry in the country increased by 3.9% between 2016 and 2017.

According to the results of the annual survey 2017 directed to the companies of the Industry of Transformation Goods (Maquila) and Related Activities, the Gross Value of Production in the current values of the maquiladora industry increased in 3.9% inter-annually (-0.1% in 2016), basically explained by the rebound in external demand. On the other hand, foreign direct investment in maquila activities increased 21.3%, associated with greater capital contributions for the construction of new textile plants and the expansion of the harness industry, reported the Central Bank of Honduras BCH.

Canada FTA will Boost Maquila Industry in Honduras

December 2012

The annual export growth of the maquiladora industry in Honduras is estimated at $200 million, with the entry into force of the trade agreement with Canada.

Laprensa.hn reports that "About 200 million dollars in export growth and the creation of up to 10,000 new jobs is projected for the Honduran maquila industry in 2013 with the entry into force of the FTA with Canada, assured representatives from the sector.

Migration of Honduran Companies Continues

September 2011

Faced with the loss of "competitive advantage" businessmen in the maquila industry are continuing to migrate their operations to Nicaragua.

Jesus Canahuate, director of the Honduran Maquila Association (AHM), said that since March a total of 21 companies in the textile and clothing industry have moved their operations to the neighbouring country.

Honduras: Investment in Maquila Will Create Jobs

April 2010

15.000 jobs could be created in 2010, thanks to strong investment in the textile and apparel industry in Honduras.

The figure was revealed by Jesús Canahuati, president of the Honduran Maquila Association.

Canahuati told Latribuna.hn that “All the companies will rehire personnel, this is good, as it creates employment over already installed productive capacity”.

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