El Salvador’s president, Nayib Bukele, plans to introduce a measure to the country’s Congress that would eliminate all taxes on technological innovation, the development of artificial intelligence (AI), computing, and communications hardware manufacturing.
Bukele announced his intentions in a tweet on March 24 that the tax exemption would include income, property, capital gains, and import tariffs on tech innovations such as coding, software programming, AI development, and computing and communications hardware manufacturing.
Next week, I’ll be sending a bill to congress to eliminate all taxes (income, property, capital gains and import tariffs) on technology innovations, such as software programming, coding, apps and AI development; as well as computing and communications hardware manufacturing.
— Nayib Bukele (@nayibbukele) March 24, 2023
The measure aims to encourage the development of El Salvador’s technology sector and attract more foreign investment in the field.
This initiative is part of broader efforts by the Bukele administration to modernise the economy and reduce the country’s reliance on traditional industries such as agriculture and manufacturing. The government has invested in infrastructure, education, and entrepreneurship programs to promote innovation and digitalisation in a variety of industries.
If the bill is passed, El Salvador could become a desirable location for tech companies and entrepreneurs seeking to establish a presence in Central America.
