Salvadoran Businesses Object Fiscal Reform

ANEP, the Private Enterprise Association warned the proposed tax reform would impact negatively on consumers.

Wednesday, October 7, 2009

Federico Colorado, ANEP President, said: "In our opinion, in times of crisis we must study how to make the economy more dynamic, make it grow and analyze how to boost the diverse productive sectors".

"The project, to be submitted in the next days by the Treasury Ministry, intends to increase collection to last year's levels of $1 billion. Tax collection has been lower this year, because of the crisis", reports SDPnoticias.



More on this topic

Constitutional Complaint Against Tax Reform

December 2012

Salvadoran businessmen, through ANEP, will submit an appeal to the Constitutional Court against the tax reform in force since January 2012.

"The measure seeks to challenge the legality of two executive changes implemented: a 5% tax on profits of companies operating in the free zone regime and the law of international services (in the form of income tax) and the application of a 1% minimum tax on the total sales of companies that report losses for two consecutive years", noted an article in Laprensagrafica.com.

El Salvador: Reforms to Income Tax Rejected

November 2011

The private sector has rejected the FMLN’s proposal to reform income tax law.

Jorge Daboub, president of the National Association of Private Enterprise (ANEP in Spanish), said the proposal is not based on a deep technical analysis of the subject. The first action that should be performed is to correct the "waste of Salvadorans’ tax dollars."

Salvadoran Businessmen Oppose Higher Taxes

February 2011

Private business leaders spoke out against the creation of new taxes and increasing income tax.

"The private sector struggles between uncertainty and anger, after a study by Eurasia ensures that the Salvadoran Government is expected to approve an increase to the ceiling of income tax, a new estate tribute and a security levy," Laprensagrafica.com reports.

New Vehicle Tax in El Salvador

September 2009

One of the modifications to be introduced by the fiscal reform is a new tax when registering a vehicle.

The reform package includes 4 types of measures: tax, non-tax, adjustments in expenditure and complementary measures. With this new vehicle tax, authorities expect to collect $20 million a year.