Municipalities in El Salvador that fail to roll back increases in business license fees, fines, municipal taxes, and permits will face extortion charges, President Nayib Bukele warned on Monday.
The president reiterated that the deadline for municipalities to comply with this order is midnight. He also underscored the government’s commitment to supporting micro, small, and medium-sized businesses.
“Today, Monday, at midnight, the deadline expires for all municipalities in the country to REVERT all fees, fines, licenses, permits, taxes, and any other charges, restoring them to the same levels as before the new municipal governments took office on May 1 of last year,” Bukele posted on X, formerly Twitter.
“I expect 100% of municipal councils to comply with this directive. Otherwise, they will be charged with the crime of EXTORTION before the Attorney General’s Office. Business owners, especially small and medium-sized entrepreneurs, deserve the state’s support. They are key to our country’s economic growth. Harassing them, forcing them into bankruptcy, or even shutting down their businesses is unacceptable and will not be tolerated,” he added.
Since last week, Bukele has been vocal about the need for municipalities to roll back the fee hikes, stressing that prices must return to those in effect before May 1, 2024.
Additionally, the president has called for a refund of excessive charges that have negatively impacted business owners. Municipalities that have implemented such increases must reimburse affected businesses accordingly.