El Salvador President Nayib Bukele has announced plans to eliminate all taxes on technological advancements, including income, property, capital gains, and import duties.
He revealed on Twitter that he would be submitting legislation to Congress the following week.
The move is expected to promote technical innovation and attract foreign investment to El Salvador. The tax cut will apply to various areas, including software development, coding, apps, artificial intelligence, and manufacturing of devices for computers and communications.
El Salvador has been making strides towards embracing financial technology, with Bukele being pro-bitcoin.
The country recently became the first to legalize cryptocurrency, and plans to establish the world’s first “bitcoin city.”.
While it is not yet clear whether the tax cut will apply to bitcoin applications, a bill authorizing the government to approve a bond backed by bitcoin is set to launch in 2023.
The move to eliminate taxes on technological advancements is in line with Bukele’s push towards technology and innovation.
Last week, the nation had a developer training program for Bitcoin/Lightning, and the highly anticipated Bitcoin bonds will launch between June and September.
El Salvador is on the path to becoming a center for cryptos, and the latest action by the President is expected to further accelerate this growth.
Source: cryptonews.com
