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.
The government of President Daniel Ortega has proposed to Parliament removing the Selective Consumption Tax (ISC) for milk based beverages and reducing income tax (IR) on stock transactions which exceed an annual amount of C $60 million ($2.6 million) for rice and raw milk.
"This is an issue where we need to look at how it can be corrected. There are no companies which publicly trade and sell milk above the C $60 million ($2.6 million) mark, there is no producer which publicly trades 3,600 gallons of milk per day”, argued Jose Adan Aguerri, President of COSEP, according to the article on the website.
Luis Arevalo, General Manager of the Agricultural Commodity Exchange of Nicaragua, agreed with Aguerri. Arevalo said the reduction in the tax burden should be applied to primary production sectors who also pay taxes but who do not trade above the established C $60 million mark, as rice trades at 140 million dollars annually.
Source: elnuevodiario.com.ni
More on this topic
February 2012
Although a reform reduces income tax (IR) from 1.5% to 1% for transactions of rice and raw milk in the bag, unsatisfied businesses are demanding that more areas be included.
The reform of the Fiscal Equity Act was passed on Wednesday (8th February, 2012) in the National Assembly by 85 votes, the majority of which were from the group of the ruling Sandinista Front (FSLN), and the opposition.
January 2010
Most companies are unprepared to apply the changes required by the new Tax Law.
This was confirmed by spokespersons from the private sector, who added they could spend months learning the new regulations, incurring in additional costs.
"Businessmen complain that not even the Tax Authority (DGI), is ready to comply with the changes", reported Laprensa.com.ni.
January 2012
With an amendment to the Fiscal Equity Act, the government of Nicaragua has eliminated the tax on milk-based drinks, and limited to 2% tax on rice.
The draft amendment to the Fiscal Equity Law, said the executive, aims to prevent a price rise of milk-based drinks and basic rice in this country and stimulate production.
April 2009
The Superior Council of Private Enterprise, COSEP, considers that this is not the time to negotiate a tax reform.
José Adán Aguerri President of COSEP, reported that within the current economic context, fiscal reform would not be a response to alleviate the difficulties.
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