El Salvador’s President Eliminates Taxes on Tech Innovation
On Thursday night, President Nayib Bukele announced his plan to propose a bill to El Salvador's congress to eradicate taxes on technology innovations.
In a tweet, Bukele stated that the tax exemption would cover income, property, capital gains, and import tariffs on technology innovations such as coding, software programming, AI development, and computing and communications hardware manufacturing.
The bill aims to encourage growth in the technology sector, attract foreign investment, and modernize the country’s economy.
This initiative is part of the Bukele administration’s broader efforts to promote innovation and digitalization across various sectors. It could make El Salvador an attractive destination for tech companies and startups if approved.
El Salvador’s adoption of Bitcoin has been praised as a bold and innovative step that could pave the way for other countries to follow suit.
Additionally, El Salvador has embraced Bitcoin as a legal tender to boost financial inclusion and reduce reliance on the US dollar.
The International Monetary Fund initially criticized the move, but the risks have not materialized.