According to a recent announcement, Nayib Bukele, El Salvador’s President, is preparing to pass a bill for cutting off taxes on tech as well as computing and communication hardware manufacturing. It would be very good for the tech companies available there and will also encourage other companies to open their centres there.
El Salvador’s President is planning to eliminate taxes on tech
Last Thursday, the President of El Salvador, Nayib Bukele, said that he is going to send a bill to the country’s Congress next week to eliminate all taxes on tech innovations as well as computing and communications hardware manufacturing. On Twitter, he said, “Next Week, I will send a bill to congress to eliminate all taxes(income, property, capital gains and import tariff) on tech innovations such as software programming, coding, apps and AI development.
The tax cut would also encompass computing and communication hardware manufacturing, Bukele added. This is an exciting step El Salvador’s President will take as it will allow them to attract big tech companies to their country and help them become a crypto hub.
It seems that the Salvadoran leader is very keen to make the Central American country a crypto hub, adopting bitcoin as a legal tender in 2021 and revealing plans to create the world’s first Bitcoin City. However, the chances of getting this bill accepted and passed are not much high because this will also lead to losing a huge amount of money on taxes which is not good for any country. It will be interesting to see how they plan for this bill and its consequences.
Tax elimination on tech can help El Salvador become a crypto hub
As El Salvador’s President prepares to pass a bill for cutting-off taxes on new tech, it will push the country towards new innovation and development. It is very good news for the crypto industry as nowadays, one of the biggest problems for the crypto exchanges in different countries is nonsense laws, high taxes and superb pressure from the government.
However, if the bill is passed and comes into action, it is definite that El Salvador will be one step closer to becoming a crypto hub. Besides it, they have also started accepting Bitcoin as a legal tender since 2021, increasing their citizens’ trust in digital assets.
What are your thoughts on El Salvador’s plan to ready a bill to cut-off taxes on tech innovations? How will this bill help El Salvador become a crypto hub? Let us know in the comments below. And if you found our content informative, share it with your family and friends.
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