Nicaragua: Excessive Bureaucracy in Exemptions for Agriculture

TODAY NICARAGUA – Producers are complaining about a lack of agility and excessive paperwork in the process to request tax exemptions for the purchase of equipment and farm machinery.

Agricultural producers argue that they can not easily access the exemptions for the purchase of equipment which is established in the recently passed Tax Act. Although it has been stated that within three months the necessary reforms will be made for the exemptions to given on products and not producers, the current requirements are delaying procedures and access to the incentive on the part of the producers.

The president of the Superior Council of Private Enterprise, José Adán Aguerri told that “… ‘We’re taking away from the producer the opportunity to buy the product tax free, and it is making development of the activity more expensive for the producer …’. ”

“… The law provides exemptions to the producer in the case of purchases of raw materials, intermediate goods, capital goods, spare parts and accessories for machinery and equipment to farmers and micro, small and medium enterprises in industry and fishing, through an exhaustive list. ” Aguerri added “… ‘What we are proposing is that once the new mechanism becomes effective in two and a half months, they will exempt the product, there will no longer be a problem, but until that time we cannot take away rights from producers.'”