Taxing the income of companies that publish and sell books will speed up the deterioration of a market already affected by new technologies and lower consumption of books.
The tax package that the government intends to implement includes publishers, who will have to start paying income tax if the tax reform thrives in the Legislature. If this is the scenario, book prices will rise and in house publications will be further reduced, anticipate industry representatives.
CEPA finances will only allow them to invest $21.8 million that is considered critical to maintaining operations in 2009.
The Executive Autonomous Port Commission (CEPA) of El Salvador has committed its finances to the payment of the loan from the Japanese JBIC Bank for the construction of La Unión Port, leaving few resources for other investments. This year, the entity will only make certain investments considered "critical" so that the normal operation of Acajutla Port and the International Airport of El Salvador will not be affected.
Months will go by before the concession for its operation is granted. President Saca hopes to send the concession project to Congress by January 18.
There is still no political consensus for the concession or for the shareholder participation that the State should have in the company that will manage the Port.
According to reports from elsalvador.com, the president of the Autonomous Executive Port Commission (CEPA) Albino Roman, said "to be discussing the percentage that the State should have is a lack of vision." He added that "a world class operator is only going to invest if the business is profitable, hence a 51-49% distribution of the shares in favor of the State is not profitable for the investor. With that proportion we will not even get 10% IRR (internal return rate), when Fomilenio is asking for 14%
The impasse is no longer just technical, but also political and legal, and above all because there are no clear functions for the parties involved.
Even if the concession degree is approved for a company with recognized experience to start operating the Acajutla and La Union ports, it would not be able to do so as long as the secondary laws and internal regulations, that directly or indirectly have to do with the port, are not changed.
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