El Salvador’s President Nayib Bukele is on a mission to transform his country into a technology hub, aiming to provide better job opportunities for its youth. To achieve this, Bukele plans to eliminate taxes that hinder the growth of technology in the nation.
In a recent announcement via his Twitter account, Bukele informed the public that he will soon unveil a plan to abolish all taxes on technological innovations. This includes income tax, property tax, capital gains tax, and import duties on various technology-related activities and products, such as software programming, coding, app development, artificial intelligence, as well as computer hardware and communications manufacturing.
Next week, I’ll be sending a bill to congress to eliminate all taxes (income, property, capital gains and import tariffs) on technology innovations, such as software programming, coding, apps and AI development; as well as computing and communications hardware manufacturing. @nayibbukele
President Bukele hopes that this bold move will encourage the growth of cutting-edge technological developments, including AI applications, across El Salvador. While he has not yet provided further details about the proposal, it must be approved by the country’s legislative body before it can become law.
Fortunately, the initiative is likely to receive strong support, as El Salvador’s Legislative Assembly is predominantly composed of members from the ruling party. This political backing increases the chances of the proposal being passed and implemented without major hurdles.
Bukele’s decision has caught the attention of neighboring nations, such as Costa Rica. Johana Obando, a Member of Parliament from Costa Rica’s Liberal Party, expressed her enthusiasm for the Salvadoran president’s plan. Obando argued that Costa Rica is living in the past and could greatly benefit from adopting a similar approach to technology innovation and taxation.