El Salvador increases tax collection

Tax collection continues to record historic levels in El Salvador. According to the latest data shared in a morning interview by the Minister of Finance, Alejandro Zelaya, as of November 6, $702 million more in taxes had been collected than in the same period in 2021, which represents a year-on-year increase of 15%. .

In addition, the official explained that the collection projections that the government had for the entire year have even been exceeded by $300 million. This translates into 6% more taxes than expected.

“Our revenue has continued to improve this year,” he said.

Zelaya indicated that the tax that has registered the most growth is the income tax (ISR). This year, 54% more has been collected than what was collected the previous year with this tax, a growth of $286 million.

On the reasons for this increase, Minister Zelaya pointed out that the country’s economic activities have remained dynamic; In addition, he highlighted that the Anti-Evasion Plan and the Anti-Smuggling Plan have taken center stage in the government’s fiscal strategy.

According to Zelaya, in three years of implementation, $810 million in taxes have been recovered with the Anti-Evasion Plan, and more than $60 million with the Anti-Smuggling Plan.

“In large part, the increase in income tax collection has been possible thanks to the Anti-Evasion Plan and also to the growth we have had in our Gross Domestic Product (GDP),” explained the minister.

On the other hand, the head of the Ministry of Finance (MH) pointed out that this growth in taxes improves the country’s financial outlook, and allows it to carry out maneuvers to meet its credit obligations.

“We still have to pay $667 million and, for the 2025 bond, $357 million. Funding sources are assured. The payment is already included in the budget for the following year, and for this there is financing from multilateral organizations and its own financing. Most will be with their own funds », he stated.