El Salvador’s Bitcoin (BTC) Friendly President Nayib Bukele Will Eliminate Taxes on Tech Sector

YEREVAN (CoinChapter.com) — El Salvador’s Bitcoin-loving president is back with another bill that could put his country into the spotlight.

Nearly two years after Nayib Bukele made history by passing a law that made BTC a legal tender (the first government to do so), he is continuing the digital transformation of the Central American nation. He has now decided to remove all taxes on technological advancement and innovation.

According to a Twitter post by president Bukele, he plans to approach the country’s Congress to gain support for his plans. 

“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,” 

he said on Twitter.

Bukele says the tax cut will also encompass computing and communications hardware manufacturing. 

El Salvador eyes to become Latin America’s (LATAM) tech hub

Nayib Bukele has already made public his plans to turn El Salvador into a cryptocurrency hub. Besides adopting BTC as a legal tender, Bukele revealed his grand plan to launch the world’s first ‘Bitcoin City.’ 

Speaking at the Bitcoin Week conference in November 2021, the Salvadoran leader announced his upcoming project to build the city along the Gulf of Fonseca. Per his plans, the location was ideal as it would harness power from the nearby volcano to light the city and use the electricity for BTC mining. 

According to Bukele, around $1 billion from the proceeds from the country’s continuous investment in BTC would be directed toward the project. 

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President Bukele’s Government has purchased Bitcoin on at least 12 occasions. Currently, the Central American nation has 2634 BTC tokens in its coffers. 

Last week, El Salvador’s Bitcoin Office announced the launch of a first-of-its-kind Bitcoin and Lightning developer training program in the country. 

Against the backdrop of all this, it is unsurprising that Bukele is pressing his foot on the accelerator to make El Salvador a Latin American tech hub. 

The tech community welcomes Bukele’s decision 

The tech community could not hide its excitement as soon as news of Bukele’s plans spread. Likewise, several entrepreneurs welcomed the decision and wanted to do business in the country. 

Mayer Mizrachi, founder of the Panama-based marketplace to buy or sell gaming and technology, said he would ditch Costa Rica in favor of El Salvador in his expansion plans. 

“Considering El Salvador is dollarized, this incentive will likely put it at the forefront in tech Latam. If this bill gets approved, I’ll expand Geeky Drop to El Salvador and cancel plans to go to Costa Rica. Honestly, a no brainer,” 

he said. 

Other excited entrepreneurs also revealed plans to start a business in the Central American nation. 

Bukele has almost always succeeded in getting Congress to support his plans. So with this new bill set to become law, the development comes as good news for Bitcoin and crypto development.