President Bukele Eliminates Basic Food Products' Import Duties for a Decade In El Salvador
President Bukele Eliminates Basic Food Products' Import Duties for a Decade In El Salvador
President Nayib Bukele has announced a new measure in his battle against speculation and price gouging in El Salvador, eliminating import duties for certain basic foods and supplies for a decade. While some of these products did not pay duties due to a previously approved bill, critics argue that this will exacerbate reliance on imports, hurting national production.
Bukele Fights Back at Speculation: Passes Law Eliminating Import Duties for Essential Food and Supplies in El Salvador
President Nayib Bukele has taken another shot at curbing speculation and price gouging in El Salvador. He pushed a now-approved proposal to eliminate import duties for some essential foods and supplies for a decade, expecting to lower the cost of these products in national markets by substituting national products with imported goods priced lower.
Some of these products did not pay duties already due to the existence of a prior law, including beef, chicken meat, pork, turkey meat, chicken eggs, fluid milk, beans, yellow and white corn, white rice, tomatoes, onions, potatoes, butter, vegetable oil, sugar, animal feed, fertilizers, fertilizers, insecticides, and herbicides.
However, the new bill includes previously excluded products, extending the tax elimination for 116 items, according to Bukele’s statements.
These measures have been criticized by economists and members of specific industries affected by this move. Rafael Lemus, an economist, highlighted the negative effects of this decision on the national producers. He stated:
In the short term, it will not have any effect. What it will have, in the long term, is a certainty that it will be cheaper to bring imported products if those from abroad have more competitive prices.
Nonetheless, some supplies needed for agricultural purposes were also excluded from paying import taxes, which could result in an acceleration of national production, a development that can be positive for producers.
This is one of the government’s latest measures in this regard, which includes the expansion of the government-sponsored Farmer’s Markets initiative, where Salvadorans can purchase groceries cheaper than in regular stores. Before, Bukele warned speculators and distributors about the consequences of their actions, giving them an ultimatum to lower their prices.
What do you think about Buekle’s measures to curb price speculation in El Salvador? Tell us in the comments section below.
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