Contrary to claims by President Maurcio Funes that the new tax will not affect the country's economic recovery, employers and economists agree that in the short term it will affect the generation of jobs and cause an increase in the cost of goods and services.
"Furthermore, in the medium term, foreign firms located in or interested in the country could migrate to other nations, as is already happening due to the lack of legal stability, policy and crime..." noted a review in Elsalvador.com. "...what is more the 2000 large capital companies who will be affected could disperse in order to create small businesses that do not have to the pay taxes. "
Source: elsalvador.com
More on this topic
October 2011
Laura Chinchilla, Costa Rica's president, has defended the political pact that will allow the approval of a tax package that includes tax increases in the zones.
The president defended her new tax reform plan despite strong opposition from the Ministry of Foreign Trade.
May 2011
The government aims to raise $120 million for the fight against crime.
The proposal presented by President Mauricio Funes to the Advisory Committee would mean a new tax payable by 2 000 large contributers, the resources would be used to strengthen measures against crime and insecurity in the country.
November 2010
The Finance Ministry is discussing a tax on large capitals to fund security expenses.
At the request of President Mauricio Funes, the Ministry of Finance examines the implementation of a equity tax in order to finance spending on public safety.
La Prensa Gráfica on its website reported statements from President Mauricio Funes, on the subject, "It is a equity tax to fund security costs." ¿And where did the idea come from? From my meeting with President (Alvaro) Uribe, in Colombia."
January 2011
Minimum Wage 2011 and maturity dates in January 2011 for tax liability of December 2010.
MINIMUM WAGE
In a publication made on December 30, 2010, in the Official Newspaper, the Government Agreement No. 388-2010 of the Ministry of Labour and Social Welfare, establishes the new minimum wages for agricultural activities, and for non-farming export activities ruled by Decree No. 29-89, effective January 1st, 2011.
español
1876
