Discusses pricing formula and other fees, value-added tax (VAT), etc.
Last Published: 9/12/2019
In El Salvador, the government regulates prices for liquefied propane gas, public transportation, energy, and medicines. The government regulatory agency, the General Superintendence of Electricity and Telecommunications (SIGET) regulates electricity and telecommunications.  Government ministries directly subsidize water services and establish the distribution service tariff. The Ministry of Economy and the Consumer Protection Office closely monitor retail gasoline and diesel, as well as basic food products prices.

El Salvador assesses a value-added tax (VAT) of 13 percent on most goods.  Excise taxes also apply to certain goods, such as alcohol, firearms, cigarettes, and new automobiles.  Imported products may be subject to duties.  Import tariffs for non-CAFTA-DR goods can vary. For example, raw materials import duties typically range from 0 to 5%, intermediate goods typically range from 5 to 10%, and finished goods are charged a maximum of 30%.  Textiles, agricultural products, vehicles, and a few other non-essential products are subject to higher tariffs that range from 15 to 164%.  The tariffs only apply to products manufactured outside of the Central American Common Market and non-U.S. products.  A comparative chart of Central American import duties can be found at the Central American Economic Integration Secretariat website.

CAFTA-DR reduced tariff and non-tariff barriers for U.S. exports into the region. Duties for U.S. made products to El Salvador can be found in the CAFTA-DR Tariff Schedule

On services, a 20% withholding tax is applied to payments for services that have been provided to private or public institutions in El Salvador by foreigners, even if the service was performed entirely outside of El Salvador.

 
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