Friday, 11 March 2022 15:29

ASTIC proposes freezing VAT if fuels increase more than US$0.30 in taxes

Written by Evelyn Alas

The President of the la Asociación Salvadoreña de Transportistas Internacionales (ASTIC), Raúl Alfaro, said in a morning interview that despite the sharp rise in fuel prices, the institution maintains the cost of its freight.

Alfaro added that one of ASTIC's proposals, to level out this impact on the economy, is to freeze the Value Added Tax (VAT), when fuel increases to more than US$0.30 in taxes.

The head of ASTIC, affirms that measures should be applied at the border to speed up the process to enter or leave the country with or without cargo, because the procedure is very slow and affects the merchandise, the process of delivery of the product and its earnings.

He also said that a freight that today costs US$1,600 to Costa Rica could be US$1,000 even with expensive gasoline, I have to charge US$1,600 and it is not profitable for the sector, because it would take 21 days to return to the country with more losses than profits.

Likewise, he said that they are requesting to the authorities the management of a civil liability insurance that guarantees the safety of the drivers and also covers minor road accidents in this sector.

In addition, he said that the institution has no relationship with the Central Government, is not subsidized and only with the Viceministerio de Transporte (VMT) and the Dirección General de Aduanas they have a closer relationship.