The affected Central American employers expect the Nicaraguan government to sign the rectifying documents as soon as possible so that the Directorate General of Customs can stop collecting the tax from today.

According to an article in Nacion.com, following complaints by Honduras and Guatemala, the Nicaraguan government has agreed to remove the collection of value added tax (VAT), which came into force on January 1 as part of a reform of the Coalition Tax Act, taxing personal care products and imported kitchen ware coming into Nicaragua.

The Nicaraguan government accepted the complaints that came through the Superior Council of Private Enterprise (COSEP), and will be applying the tax rectification this week, as reported in Guatemala by José Adán Aguerri, Cosep’s president.

Aguerri added that Nicaragua's decision to rectify the collection was adopted last Friday, at a meeting between Cosep and government authorities in the neighboring country.

Source: Nacion.com

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