The main freight union of Central America has issued an ultimatum to the government of El Salvador to modify the collection of the new tax levied at customs offices.
Representatives of these unions which integrate the Central American Council of Transport have given a deadline of May 31 to amend this charge, otherwise on that date, if Congress has not amended the law which created the new tax, the truckers will go on strike for an undefined period causing heavy losses to Central American companies.
The Congress of El Salvador is evaluating implementing a tax which would in principle would apply only to LaGeo, a subsidiary of the Italian company Enel.
Against the backdrop of the dispute between the Government and the Italian company Enel over the capitalization of the geothermal LaGeo, "...an ad-hoc committee of the Legislature which is studying the LaGeo concession, the only cmpany with state permission to exploit subterranean heat sources, has proposed a series of amendments to the Electricity Law, including a tax that would be incurred by the activity of the geothermal company. "
The implementation of the recently approved law in Panama will affect trade and the tourism sector in particular.
From a press release issued by the Panamanian Association of Business Executives (APEDE):
The Panamanian Association of Business Executives today appealed to the president Ricardo Martinelli, to preserve free enterprise, have respect for legal certainty and increased investment for the private sector, by vetoing, because of its undesirability, bill 559, which amends articles of Law 45 from 1995 on the excise tax on alcoholic beverages, recently approved by the National Assembly.
Businessmen indicate lack of consultation with the affected sectors, and have expressed their concern about the impact of the new tax on competitiveness.
Bill 559, which amends sections of Act 45 of 1995 on the excise tax on alcoholic beverages was approved on its third reading by the full Legislature.
The tax system in Costa Rica is chaotic, complex, unfair, disproportionate, inequitable, and ineffective, which affects development and competitiveness, encouraging tax evasion and smuggling.
In an analysis piece in Elfinancierocr.com items, Danilo Villalta notes the need for comprehensive reform of the Costa Rican tax system, starting with a "strategic planning process" to approve a plan "agreed with the various political forces, and subsequently according to that plan, develop bills with the participation of specialists in order to have legislation that is clear, transparent, simple and easy to apply by the administrator and the taxpayer. "
It would affect the banking sector in El Salvador, lowering the volume of transactions in the financial system, and increasing the price of money.
The Salvadoran Banking Association (Abansa) is studying a proposal by the Ministry of Finance to tax the issuance of checks and electronic transactions, but its representative Marcela de Jimenez has already indicated her criticism, noting that it has not been ruled out "that this tax will affect the banking system, ie, there will be a decrease in the level of resources that are traded through the financial system and therefore an increase in the price of money. "
The bill proposed by the government will levy a tax of 0.25% on the amount of electronic transactions and checks.
The bill entitled "Law on Taxes for Financial Operations", introduces a tax on checks and electronic transfers and a tax to control liquidity that applies to those transactions amounting to over $3,000.
The Supreme Court has rejected a constitutional challenge filed by employers against the 1% tax levied on companies' gross revenue.
Latribuna.hn reports that "In April last year, Congress approved the legislation which amended Article 22 of the Income Tax Act, to improve government revenues, and the decree was issued on 31 May 2011 in the official Gazette. "
If passed the new reform would create taxes for financial transactions, unproductive properties and newspapers.
Elsalvador.com reports that Carlos Caceres, head of the Ministry of Finance stated that "The President (of the Republic) has instructed the Ministry to evaluate a proposal acceptable to him and to society, that is politically acceptable and not damaging to the productive sectors and to the poorest people. "
Warnings from Honduran businesses about the flight of capital resulting from the application of the controversial tax on banking transactions (known in Spanish as the ‘Tason’), are coming true.
This is how representatives from Honduran companies explained things, after statements from President Porfirio Lobo recognized a reduction in revenue because of the "Tason".
Casinos in Costa Rica will pay 10% on net profits, while the tax for betting call centers will vary depending on number of employees.
Regarding the tax for call centers, an article in Nacion.com notes that "When the firm has up to 50 employees, the tax will be will be 57 times a basic salary (¢20.5 million), those with 51 to 99 employees will pay 85 times a basic salary (¢30.6 million) and if there are more than 100 employees, the tax is 113 times a basic salary (¢40.6 million). "
Legal entities not reporting activity should de-register in June otherwise they will have to pay this tax.
If the owners of inactive companies do not de register, they will have to pay the tax, which is half of a basic monthly salary (currently $358.45 or ¢180,300) for active entities and 25% for inactive ones (¢ 90,150 would or $179.23).
The Honduran Council of Private Enterprise is warning about a potential loss of competitiveness for companies investing in the country.
Through its president, Aline Flores, the COHEP (Honduran Council of Private Enterprise) is opposing a new tax package sent to Congress by the government.
A tax of 4 cents per cigarette has entered into force in Costa Rica, which was been passed onto consumers by the tobacco companies.
On Monday companies raised the price of a pack of cigarettes by 400 colones ($0.80), thereby passing on the tax of 20 ¢ per cigarette imposed on them under Control of Tobacco Act.