Key takeaways:
- El Salvador’s President announced that he would submit a proposal to the legislature that would abolish all taxes on technology developments.
- In 2021, the country became the first to accept bitcoin as a lawful tender.
On Thursday night, El Salvador’s President Nayib Bukele announced that he would submit a proposal to the legislature that would abolish all taxes on new hardware and software developments.
Supporting innovation undoubtedly opens a number of opportunities. This development will be hampered by centralized suppression, though. El Salvador is undeniably concentrated on technological advancement while the rest of the world struggles with the banking and other economic crises. President Nayib Bukele intends to totally eliminate all taxes on technological advancements as a consequence.
In a recent tweet, Bukele mentions that trade tariffs, as well as all taxes, including those on income, property, and capital gains, will be eliminated. On top of that, nothing like that has happened yet. Next week, according to the President, a bill will be sent to Congress. The President also mentions that, among other things, “technology innovations” will focus on developing AI, programming, and apps. Bukele tweeted further details about the same:
“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 programming, coding, apps, and AI development, as well as computing and communications hardware manufacturing.”
Given El Salvador‘s push towards technology, its most recent action was not unexpected. President Bukele has been concentrating on utilizing Bitcoin to embrace financial technology over the past few years. The country was even given access to a coder training program for Bitcoin/Lightning last week. Additionally, it is expected that between June and September will see the launch of the eagerly awaited Bitcoin shares.
While artificial intelligence has swept the globe, Bitcoin is still unquestionably important in today’s world. Developers might soon move to El Salvador as a result of rising demand for AI and the possible tax haven of the country.
However, El Salvador and its President are known for being pro-bitcoin, and in 2021 it will become the first country to legalize the cryptocurrency. It is currently unknown if this move will apply to Bitcoin applications. Legislation authorizing a bond backed by bitcoin was approved by the nation’s legislature earlier in 2023.
