President Nayib Bukele of El Salvador has announced plans to send a bill to the country’s congress that would eliminate all taxes on technology innovations. In a tweet posted on March 24, Bukele stated that the bill would remove taxes on income, property, capital gains, and import tariffs on a range of technology-related activities, including software programming, coding, apps, AI development, computing, and communications hardware manufacturing.
Bukele’s proposed bill is part of a broader strategy to position El Salvador as a technology hub in Central America. In recent years, the country has made significant strides in promoting technology and innovation, including becoming the first country to adopt Bitcoin as legal tender.
The elimination of taxes on technology innovations could further boost El Salvador’s technology sector by making it more attractive to foreign investors and businesses. By reducing the cost of doing business in the country, the bill could also help to stimulate job growth and economic development.
The proposed bill will now need to be reviewed and approved by El Salvador’s congress before it can become law. If successful, it could set a precedent for other countries in the region to follow, as they seek to attract investment and promote innovation in the technology sector.
In conclusion, President Nayib Bukele’s proposal to eliminate taxes on technology innovations in El Salvador is a bold move aimed at boosting the country’s technology sector and promoting economic growth. While concerns have been raised about the potential impact on government revenue, the bill could help to position El Salvador as a leader in the region’s technology industry. The bill will now need to be reviewed and approved by congress before it can become law.
