The 11 measures promoted by the government to avoid negative effects in the face of inflation due to external factors such as the war between Russia and Ukraine have translated into direct benefits for the population in their four months of validity.
The Minister of Finance, Alejandro Zelaya, explained that the initiatives related to controlling the prices of food products and hydrocarbon derivatives (liquefied gas and gasoline) have allowed the country’s dynamics to be maintained and inflation levels to be lower than the average for the region.
The official pointed out, for example, that without the decree to fix fuel prices, Salvadorans would be paying more than $6 per gallon.
«We have calculated that the fiscal expense of the measures has been $240 million. This has implied, only at the fuel level, without taking into account the other measures, a saving of $2.2 million per day for the economy of Salvadorans», he pointed out.
Zelaya added that the fact that the price increase is kept under control has allowed demand not to be reduced and there is no direct impact on the companies’ billing, which has a positive impact on tax collection.
As of June 30, according to data from the Treasury, the collection projection for this year has been exceeded by around $585 million. That represents 18% more than expected in income to the state coffers from taxes such as income and Value Added Tax (VAT).
«This increase is important because we have $600 million more than expected. There is a direct strategy with the anti-evasion plan. It is also a reflection that the economy continues to grow », he stated.
On the other hand, the head of the Treasury assured that the Salvadoran government does not propose a scenario of non-payment of fiscal commitments, and assured that it has the capacity and the will to comply with them.
«We are not going to stop paying our obligations. We will fully comply with each of them. We have complied even in times of crisis with COVID-19, when our tax revenues fell enormously and we still came out with all the commitments. And now we will continue to comply,» said Minister Zelaya.
In addition, he stressed that for the moment they do not consider seeking credits in the international market since fiscal revenues and multilateral financing will be sufficient to meet the country’s obligations.
«We have presented all our tax scenarios, and I think everyone is aware of our ability to pay. We are going to fulfill all our commitments », he concluded.