Friday, 30 December 2022 20:10

El Salvador will become a leader in tax collection, says economist

Written by Evelyn Alas

Economist and former President of the Banco Central de Reserva (BCR), Carlos Acevedo, explained in a morning interview, the tax burden will be above 20% of the Gross Domestic Product (GDP), in 2023, for the second time in many years, being possibly the leading country in Latin America and the Caribbean in tax collection in 2022.

This information is based on a report by the Economic Commission for Latin America and the Caribbean (ECLAC), in which it clarifies that El Salvador is on the way to growth, being at the top of the list.

Between january 1 and november 30 of this year, the State's coffers have been filled with a total of US$6,260.4 million, a figure that already exceeds by US$67.7 million the collection projections set forth in the nation's general budget for 2022.

He said that the current growth for the country is 2.2%, according to BCR data it could end this year at 2.7%, but could possibly reach 2.5%.

As for inflation, it is currently 7.3%, this year could end with 7% compared to 2021 which was 6.11%.

He added that inflation levels will remain high on average according to the International Monetary Fund (IMF), worldwide the percentage is 4%.

Remittances have grown 3%, there is a slowdown, the construction sector has been affected by the increase in interest rates in the United States.

 

Translated by: A.M