El Salvador’s public finances received a notable boost in the first half of 2025, with increased domestic consumption and foreign trade driving a surge in tax collections. According to the Ministry of Finance, the Treasury accumulated $4.3 billion in tax revenue by June, marking a $310.3 million increase over the same period in 2024. This represents a 7.8% year-over-year growth and a 3.7% surplus over budget projections.

The figures, published on the Fiscal Transparency platform, reflect an active economy where consumer demand and imports are generating greater fiscal contributions. “When there is production and demand, it translates into more revenue for the Treasury,” the Ministry noted.

Revenue from the Value-Added Tax (VAT), which applies to consumption, reached $1.88 billion, representing 43.7% of total tax income. Collections from VAT grew by $142.6 million compared to 2024, an 8.2% increase. Income tax (ISR), which is levied on companies and formal workers, brought in $2.02 billion—up $137.1 million from last year.

Foreign trade also played a key role, with import duties generating $178 million in revenue, an 11.5% rise over 2024. Meanwhile, selective taxes on goods such as alcohol, tobacco, and fuel yielded $120.1 million, a slight 1.6% increase.

Additional sources included $62 million from various levies like property transfers, insurance premiums, and vehicle registration—16.5% more than last year. Special contributions for road maintenance, tourism promotion, public transport, and sugar production totaled $41.8 million, reflecting a 3.5% uptick.

As El Salvador continues to position itself as a dynamic and growing economy, rising public revenue underscores the country’s ongoing fiscal and commercial transformation.