El Salvador’s President Nayib Bukele has announced plans to propose a bill to Congress that would abolish taxes on technology innovation, computing, artificial intelligence (AI) development, and communication hardware manufacturing. The bill is aimed at encouraging growth in the technology sector and attracting more foreign investment to El Salvador.
The tax exemption will include property, capital gains, income, and import tariffs on technology innovations such as coding, software programming, AI development, computing, and communications hardware manufacturing.
President Bukele’s administration has been investing in infrastructure, education, and entrepreneurship programs to promote innovation and digitalization across various sectors. This move is part of his broader efforts to modernize the country’s economy and reduce its reliance on traditional industries like agriculture and manufacturing.
If approved, the bill could make El Salvador an attractive destination for tech companies and startups looking to establish a presence in Central America. The initiative is expected to incentivize the growth of the technology sector in El Salvador and help the country stay ahead of its competitors in the region.
The proposed bill is likely to encourage innovation and entrepreneurship in El Salvador and help the country achieve its goal of becoming a hub for tech companies in the region. President Bukele’s administration hopes that this move will not only bring in foreign investment but also create job opportunities for Salvadorans in the technology sector.
This initiative is expected to have a positive impact on the country’s economy and further cement El Salvador’s position as a leader in technology innovation in the region.