Nicaragua: Excessive Bureaucracy in Exemptions for Agriculture

Producers are complaining about a lack of agility and excessive paperwork in the process to request tax exemptions for the purchase of equipment and farm machinery.

Thursday, January 22, 2015

Agricultural producers argue that they can not easily access the exemptions for the purchase of equipment which is established in the recently passed Tax Act. Although it has been stated that within three months the necessary reforms will be made for the exemptions to given on products and not producers, the current requirements are delaying procedures and access to the incentive on the part of the producers.

The president of the Superior Council of Private Enterprise, José Adán Aguerri told that "... 'We're taking away from the producer the opportunity to buy the product tax free, and it is making development of the activity more expensive for the producer ...'. "

"... The law provides exemptions to the producer in the case of purchases of raw materials, intermediate goods, capital goods, spare parts and accessories for machinery and equipment to farmers and micro, small and medium enterprises in industry and fishing, through an exhaustive list. " Aguerri added "... 'What we are proposing is that once the new mechanism becomes effective in two and a half months, they will exempt the product, there will no longer be a problem, but until that time we cannot take away rights from producers.'"

More on this topic

Easier Paperwork in Nicaragua

January 2016

The private sector is studying a government proposal designed to ease and reduce the number of formalities which need to be completed for exports and construction.

The government proposal which is being analyzed by the Superior Council of Private Enterprise (COSEP) responds to a number of concerns expressed by the same entrepreneurs months ago, who requested that the proceedings which are undertaken for exports, building and developing other economic activities be reviewed.

Stifling Bureaucracy at Airport in Managua

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Nicaragua: Tax Exemptions Maintained

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With the consent of the private sector, the government has announced that it will remove from the Tax Coalition Law the article which establishes an end to exemptions on December 31st this year.  

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Nicaragua: Exemptions and Tax Exonerations

August 2012

The projected tax reform is a battlefield for the competing interests of the various productive sectors.

Both the Superior Council of Private Enterprise (COSEP) and the Union of Agricultural Producers of Nicaragua (UPANIC), are in favor of excluding the agricultural sector from the discussion of tax reform, meanwhile the National Workers Front (FNT) and the Nicaraguan Council of Small and Medium Enterprises (Conimipyme), reject such a position as discriminatory.