Nicaragua: Businesses Need More Fiscal Reform

Business leaders see the government’s tax reform bill as insufficient and analysts suggest including more sectors in order to stimulate economic activity.

Thursday, February 2, 2012

The Superior Council of Private Enterprise (COSEP) has stated that the tax reform bill that the government has sent to the National Assembly, was not consulted on with the private sector and they consider it "inadequate", reports El Nuevo Diario on its website.

The government of President Daniel Ortega has proposed to Parliament removing the Selective Consumption Tax (ISC) for milk based beverages and reducing income tax (IR) on stock transactions which exceed an annual amount of C $60 million ($2.6 million) for rice and raw milk.

"This is an issue where we need to look at how it can be corrected. There are no companies which publicly trade and sell milk above the C $60 million ($2.6 million) mark, there is no producer which publicly trades 3,600 gallons of milk per day”, argued Jose Adan Aguerri, President of COSEP, according to the article on the website.

Luis Arevalo, General Manager of the Agricultural Commodity Exchange of Nicaragua, agreed with Aguerri. Arevalo said the reduction in the tax burden should be applied to primary production sectors who also pay taxes but who do not trade above the established C $60 million mark, as rice trades at 140 million dollars annually.



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From a statement issued by the National Assembly:

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