Pessimism Over Tax Reform Review

In the government's review of Nicaragua's tax reform that has been in place since February, businessmen consider that no tax cuts will be made, even though production costs in the country have risen considerably.

Tuesday, July 9, 2019

After the approval on February 27, 2019 of the amendment to the Tax Concertation Law, which consists of raising from 1% to 2% the income tax for medium sized companies with higher income, and for large taxpayers from 1% to 3%, the productive sector has reported increases in its production costs.

Álvaro Vargas, president of the Federation of Livestock Associations of Nicaragua (Faganic), explained to Laprensa.com.ni that "... The fiscal reform has had several effects on the agricultural sector, inputs have had an increase between 15 and 35 percent, that has caused two things: in the agricultural sector a decrease in the area of planting and in the agricultural sector a decrease in productivity, and if you mix the low international prices, the price increase due to tax reform, INSS reform, fuels and electricity, all that makes you less competitive in the international market."

You may be interested "Tax reform: Less Jobs

Because the law states that three months after it enters into force, the tax reform must be reviewed, the government is currently in the process of doing so.

In this regard, Vargas explained that "... We consider that the review they are doing is to see that it is not giving results, we consider that they are not going to repeal anything, rather what we believe they are going to do is another reform to increase government revenue, to cover the gap between what is budgeted and what is collected."

Businessmen have been excluded from this process, because last week José Aguerrí, president of the Superior Council of Private Enterprise, said the private sector was not invited to participate.

Do you need more information about your business sector?

Request more information:








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423

CentralAmericaData is the leading B2B market research company in Central America. We specialize in compiling, validating and analyzing data from the economic activities in Central American and South American countries, along with Mexico. We provide our clients and companies with presence in the region relevant information to define business strategies and make adequate decisions. Learn more about our services here



More on this topic

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.

Private Sector Against New Tax Charges

February 2014

The union of private enterprises in Nicaragua is opposing the amendment to the Law on Tax Coalition.

The Superior Council of Private Enterprise showed its opposition to the reform of the Law on Tax Coalition. The head of the union, José Adán Aguerri said "we will file a constitutional appeal against decree 06-2014, and amendments and additions to this Law, published last week."

Reforms to Tax Law in Nicaragua

January 2014

Topics related to tax increases and the fiscal industry are to be addressed in the revision of the law.

In mid-2014, the process will start for a new amendment to the Law on Tax Coalition. Everything related to aspects of tax industry will be reviewed, the issue of bonuses and more technical issues "that are part of the process that must be continuously developed," said José Adán Aguerri, president of the Superior Council of Private Enterprise (Cosep).

Nicaragua: Businesses Need More Fiscal Reform

February 2012

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

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.

 close (x)

Receive more news about Economics

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Looking for Importers and distributors of furniture

Mexican manufacturer of office furniture seeks importers and distributors interested in dealing their products in Central America.
PM Steele is a 100% Mexican company, with more than 67...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Feb 20)
Brent Crude Oil
58.74
Coffee "C"
108.5
Gold
1,609
Silver
18.355