HomeNewsBriefNicaragua Govt Rejects Security Tax
BRIEF

Nicaragua Govt Rejects Security Tax

DRUG POLICY / 4 AUG 2011 BY JEN SOKATCH EN

Nicaragua's Finance Ministry refuses to raise taxes on businesses to increase funding for security initiatives.

Finance Minister Alberto Guevara admitted that more funds are needed to fight organized crime in the country, but said that because Nicaragua’s tax burden is one of the highest in the region, raising taxes on business is not an option.

As La Prensa Grafica reports, a recent study found that the tax burden on Nicaragua's businesses, at 63.2 percent of pre-tax profits, is the highest in the region.

Other countries in Central America, such as Costa Rica, El Salvador and Honduras, are moving forward with plans to levy new taxes to fund security initiatives. The region has set out a joint anti-crime strategy which is set to cost $953 million.

The idea of security taxes has been met with resistance from business representatives. The Federation of Central American Chambers of Commerce (FECAMCO), for example, recently came out against the idea, saying that governments should instead take such measures as combating corruption. Guevara echoed this idea, saying that the government in Nicaragua should work toward improving the efficiency of the system, instead of further burdening the country with taxes.

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

CRIMINAL MIGRATION / 25 JUN 2021

Prosecutors in Honduras say they will ask Nicaragua to extradite an alleged MS13 leader who has been on the lam…

DRUG POLICY / 20 APR 2021

Ecuador’s next president will face an unprecedented set of security challenges, as prison violence has soared to record levels, the…

ELITES AND CRIME / 27 JAN 2021

Nicaragua's Indio Maíz Biological Reserve, on the southern border with Costa Rica, is under assault.

About InSight Crime

LA ORGANIZACIÓN

Extensive Coverage of our Chronicles of a Cartel Bodyguard

23 SEP 2022

Our recent investigation, A Cartel Bodyguard in Mexico’s 'Hot Land', has received extensive media coverage.

THE ORGANIZATION

InSight Crime, American University Host Illegal Fishing Panel

19 SEP 2022

InSight Crime and the Center for Latin American & Latino Studies (CLALS) at American University discussed the findings of a joint investigation on IUU fishing at a September 9 conference.

THE ORGANIZATION

Impact on the Media Landscape

9 SEP 2022

InSight Crime’s first investigation on the Dominican Republic made an immediate impact on the Dominican media landscape, with major news outlets republishing and reprinting our findings, including in …

THE ORGANIZATION

InSight Crime Sharpens Its Skills

2 SEP 2022

Last week, the InSight Crime team gathered for our annual retreat in Colombia, where we discussed our vision and strategy for the next 12 months.  During the week, we also learned how to…

THE ORGANIZATION

Colombia’s Fragile Path to Peace Begins to Take Shape

26 AUG 2022

InSight Crime is charting the progress of President Gustavo Petro’s agenda as he looks to revolutionize Colombia’s security policy, opening dialogue with guerrillas, reforming the military and police, and…