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Nicaragua approves tax reform

11/03/2019,

On 28 February, changes to the 2012 Ley de Concertación Tributaria (tax concertation law) came into effect, in an effort to increase domestic revenue mobilization. With the new tax reform, Value Added Tax (VAT) will be applied to a significant number of basic consumer goods. However, staple foods, including maize, beans, wheat and rice (80/20 quality or lower) will remain exempt, as well as products supplied directly from smallholder agricultural producers. Although these basic food staples will be VAT exempt, tax exemptions on the importation of inputs and equipment for agricultural and industrial production were eliminated, which could eventually reflect in higher consumer prices.

Country: Nicaragua
Region: Central America