Nayib Bukele will denounce municipalities for 'extortion' if they don't lower taxes

The president of El Salvador, Nayib Bukele, criticized the country's municipalities due to the unjustified increases in taxes, something similar to what happened in the Kirchnerist localities in Argentina.

Through his account on the social network X, Bukele stated that this Monday at midnight the deadline expires for all the country's municipalities to annul the increases in rates, taxes, fines, licenses, and permits that were implemented since May 1 of last year, when the new municipal governments took office.

The Salvadoran president emphasized that he expects full compliance with this measure by the municipal councils and warned that, in case of non-compliance, those responsible will be reported to the Attorney General's Office (FGR) for the crime of extortion, a measure similar to the one taken by the Government of Javier Milei in Argentina.

In his message, President Bukele highlighted the importance of protecting entrepreneurs, especially small and medium-sized enterprises, considering them essential for the country's economic development.

He also rejected any action that could jeopardize the stability of businesses, stating that "harassing them, driving them to bankruptcy, or even closing their businesses is unacceptable and will not be tolerated."

Bukele reiterated that non-compliance with this directive could result in legal actions against the municipalities that do not comply with the provision.

The background

Bukele had already issued this warning on March 14, again through X, when he criticized the decisions made by Mario Durán, mayor of San Salvador Centro.

In his post, the president pointed out: "Although the Government has kept taxes without increases in the last six years and has even eliminated burdens like the Special Contribution for Citizen Security and Coexistence (CESC), the municipality has implemented disproportionate increases in the permits to operate businesses."

"We can't expect economic growth if the municipalities start closing businesses simply because they can't pay excessive licenses," Bukele expressed.

Salvadoran merchants and entrepreneurs recently expressed serious concerns about the costs of the taxes they are facing at the municipal level.

This way, Nayib Bukele intervenes to defend the private sector against the unjustified tax increases by the municipalities.