El Salvador: Government Debt with Exporters Grows

  • Wednesday, February 15, 2017
The debt that the state has owed to export companies for four years, from unrefunded VAT, has now reached $50 million.
Silvia Cuéllar, executive director of Coexport, told Elmundo.sv that "... every year, the Ministry of Finance should have reimbursed exporters about $200 million, and the amount now overdue is $50 million."

The mechanism to process the VAT refund that was implemented in late November 2015 did not help speed up the process, and on the contrary, it has further complicated it.

"... The union spokeswoman said that the debt accumulation is caused by a breach of the VAT law. After the reform, it was established that the refunds would be paid within 30 days and credits can be used to pay off any tax owed. However, the Treasury currently only accepts the mechanism for taxes resulting from the import of raw materials."

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