Salvadoran Government Proposes New Tax

The government aims to raise $120 million for the fight against crime.

Wednesday, May 25, 2011

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.

The private sector has received the news with caution, and believes that they need first to examine thoroughly which activities will be taxed under the scheme.

An article in Prensalibre.com states: "... the president of the Chamber of Commerce and Industry, Luis Cardenal, acknowledged the security concerns, but rejected the tax proposal for being 'inconvenient ' and 'ill-conceived. "

More on this topic

El Salvador Could Hire Security Consultancy

January 2010

President Mauricio Funes is analyzing the possibility of hiring international advisors to fight crime.

The official indicated he will continue working with his Security Cabinet, handling different proposals and ideas.

“During the X National Encounter of the Private Enterprise (ENADE), Funes invited businesses to coordinate efforts with the government to fight organized crime, insecurity and violence, as they hamper productivity”, reported Laprensagrafica.com.

New Tax Proposed in El Salvador

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."

$ 200 Million to Fight Crime in CA

March 2011

From El Salvador, the US president offered the funds for regional security projects.

Regarding distribution of funds, the president said Central American countries will be the ones deciding how to invest the funds according to their particular needs.

Laprensagrafica.com reported statements from Barack Obama, "It will be a program designed and led by Central American governments in the region ...

Funes Changes Strategy Against Crime

July 2010

“We know that social inclusion and prevention policies will provide results in the long run, but in the short term we must combat violence with repression”.

An article on BBC World noted that the country changed its crime policies to address a wave of criminal violence that is killing at least 10 people per day in El Salvador.

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