HomeNewsBriefHonduras Backs Down on Security Tax
BRIEF

Honduras Backs Down on Security Tax

HONDURAS / 16 SEP 2011 BY RONAN GRAHAM EN

The Honduran Congress softened new taxes intended to fund the fight against soaring violence and organized crime in the country, amid protests from business groups.

The taxes were levied under an act passed in June. Then-Security Minister Oscar Alvarez called on the private sector to back the move, arguing that they would benefit in the long term, as the taxes would help to create a more secure business environment, while reducing the need for companies to pay for private security.

However, private sector leaders complained about the lack of transparency in collecting and spending the tax and argued that the measures would discouraging business in Honduras.

Congress has now reined in the move, cutting taxes on mining exports and reducing the total projected sum to be raised. The reformed measure now has the backing of the business sector.

Congress President Juan Orlando Hernandez talked of his hope that move would encourage business, helping the government to raise significant funds to fight organized crime in the country, as drug traffickers move into the Central American nation and crime levels rise.

Orlando Hernandez described the current security situation in the country as “unbearable,” as the country’s murder rate looks set to rise to a record 86 per 100,000 inhabitants in 2011, one of the highest in the world.

As InSight Crime has noted, countries throughout Central America are grappling with the idea of imposing special taxes to pay for security, something the U.S. is encouraging. The region has one of the lowest tax burdens in the world, and is struggling to pay for measures, such as improved police forces, to combat organized crime.

share icon icon icon

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

What are your thoughts? Click here to send InSight Crime your comments.

We encourage readers to copy and distribute our work for non-commercial purposes, with attribution to InSight Crime in the byline and links to the original at both the top and bottom of the article. Check the Creative Commons website for more details of how to share our work, and please send us an email if you use an article.

Was this content helpful?

We want to sustain Latin America’s largest organized crime database, but in order to do so, we need resources.

DONATE

Related Content

COCAINE / 18 MAY 2022

The jungle region known as La Mosquitia in northeast Honduras has been an ideal corridor for international drug trafficking. However,…

BRAZIL / 20 FEB 2021

Drug traffickers engage in a creative game of hide and seek with coast guards and other security forces that board…

CACHIROS / 21 APR 2022

Former Honduras President Juan Orlando Hernández has been extradited to the United States, drawing to a close a shocking saga…

About InSight Crime

THE ORGANIZATION

Escaping Barrio 18

27 JAN 2023

Last week, InSight Crime published an investigation charting the story of Desafío, a 28-year-old Barrio 18 gang member who is desperate to escape gang life. But there’s one problem: he’s…

THE ORGANIZATION

Europe Coverage Makes a Splash

20 JAN 2023

Last week, InSight Crime published an analysis of the role of Amsterdam’s Schiphol Airport as an arrival hub for cocaine and methamphetamine from Mexico.  The article was picked up by…

THE ORGANIZATION

World Looks to InSight Crime for Mexico Expertise

13 JAN 2023

Our coverage of the arrest of Chapitos’ co-founder Ovidio Guzmán López in Mexico has received worldwide attention.In the UK, outlets including The Independent and BBC…

THE ORGANIZATION

InSight Crime Shares Expertise with US State Department

16 DEC 2022

Last week, InSight Crime Co-founder Steven Dudley took part in the International Anti-Corruption Conference organized by the US State Department’s Bureau of Democracy, Human Rights, & Labor and…

THE ORGANIZATION

Immediate Response to US-Mexico Marijuana Investigation

9 DEC 2022

InSight Crime’s investigation into how the legalization of marijuana in many US states has changed Mexico’s criminal dynamics made a splash this week appearing on the front page of…