El Salvador’s Congress will consider a bill to abolish all taxes on technological innovations, Nayib Bukele said.
Next week, I’ll be sending a bill to congress to eliminate all taxes (income, property, capital gains and import tariffs) on technology innovations, such as software development, coding, apps and artificial intelligence; as well as computing and communications hardware manufacturing.
— Nayib Bukele (@nayibbukele) March 24, 2023
“Next week, I will send to Congress a bill to abolish all taxes (income, property, capital gains and import taxes) on technological innovations, such as software development, coding, apps and artificial intelligence,” he wrote.
According to Bukele, the initiative is also aimed at the production of computing and communications hardware.
The former Coinbase chief technology officer Balaji Srinivasan backed the proposal from the Salvadoran president.
“In this century, many North Americans may move to Latin America,” wrote he.
In this century, many North Americans may move to Latin America. https://t.co/3IvG6GrZC0
— Balaji (@balajis) March 24, 2023
A Bitcoin advocate and author of the book about the first cryptocurrency, Jason Williams, also voiced support for the bill.
“I guess I’m moving to El Salvador to start my next company. Amazing and progressive!”
I guess I’m moving to El Salvador to start my next company. Amazing and progressive! @nayibbukele https://t.co/64p0WzRZvd
— Jason A. Williams (@GoingParabolic) March 24, 2023
Earlier, Tether’s chief technology officer Paolo Ardoino supported El Salvador’s Bitcoin initiative. In his words, it would be short-sighted to judge the country’s success just a year after the legalization of the first cryptocurrency, given the rapidly changing geopolitical landscape.
In September 2021, El Salvador’s authorities recognized Bitcoin as legal tender. The International Monetary Fund criticized the move and recommended depriving the cryptocurrency of this status.
In July 2022, Finance Minister Alejandro Zelaya said that the rollout of digital gold expanded access to financial services to a largely unbanked population, attracted tourists and investments.