El Salvador President To Eliminate All Taxes On Tech Innovation• March 25, 2023 5:00 pm • Comments
It looks like El Salvador President Nayib Bukele has big visions when it comes to transforming the country of El Salvador into a crypto and technology hub of the world.
Bukele just announced that he plans to remove all taxes on technological advancements which will likely include the crypto industry as it provides financial innovation.
This indicates that the country is focused on technological evolution and the removal of taxes will likely incentivize crypto and tech companies all around the world to establish operations within the country.
As a result, this could mean a lot of crypto capital could start to move into the country which will allow it to become the crypto hub that Bukele had envisioned.
Of course, such things will still take a lot of time, but it is positive to see that a country is taking the right direction and setting itself up for the future.
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
Furthermore, the President notes that “technology innovations” will include AI development, coding, and apps, among others. Elaborating on the same, Bukele tweeted,
“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.”
El Salvador’s latest move did not come as a surprise considering the country’s drive towards technology.
Over the last couple of years, President Bukele was focused on embracing financial technology through Bitcoin [BTC].
Last week, the country even launched a Bitcoin/Lightning developer training program. In addition to this, the much-awaited Bitcoin bonds are expected to roll out sometime between June to September.
It is expected that this new bill will be submitted to Congress next week and many within the crypto space have already expressed desire to base crypto activities within the country.
As of right now, the country is also still known as the first country to make Bitcoin legal tender and it seems that the country’s investment into the digital asset is working out decently.
The country had made the claim to invest capital to acquire 1 BTC per day since last year and that decision has been working well right now due to the recent bull rally.
It is unsure if the bullish rally will continue or if it was just a one-off reaction to the banking crisis that occurred within the United States where a few major crypto banks had collapsed.
Regardless, it looks like the country’s position on crypto remains consistent and there are no plans to change.
— Simon Dixon (@SimonDixonTwitt) March 24, 2023
El Salvador’s adoption of Bitcoin as a legal tender has been a controversial move, with critics arguing that it could lead to financial instability and increased money laundering.
Others expected a collapse of Bukele’s government due to strained relationships with the International Monetary Fund (IMF).
However, Bukele has defended the decision as a way to provide financial inclusion for the unbanked population and to promote economic growth in the country.
By waiving taxes on technology innovations and supporting the development of a Bitcoin mining industry, the government hopes to position the country as a leader in the crypto space.
JUST IN: 🇸🇻 El Salvador President to eliminate all income, property, and capital gains taxes on technology innovations 👏 pic.twitter.com/HYmsOQt4qk
— Bitcoin Magazine (@BitcoinMagazine) March 24, 2023
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