SAN SALVADOR (Reuters) -El Salvador’s Congress passed a law on Tuesday that levies a 30% tax on transactions from foreign donors to local organizations in a crackdown on “foreign agents” that critics say will boost state control over non-governmental organizations.
The Central American country’s Congress approved the law with 57 votes in favor and three against. It will come into effect eight days after it has been published in the official gazette.
Lawmakers said the law will promote transparency in how local entities operate and their influence within El Salvador, and will include a registry to which organizations must sign up.
Funds raised by the new tax are destined for general, public or social interest, according to the legislation, which does not give further details.
“We are filling a legal vacuum, since until now these activities were not under any specific regulations. The activities of foreign agents will be ordered and supervised through this new registry,” ruling New Ideas lawmaker Suecy Callejas said in a speech.
“It seeks to protect national sovereignty and avoid covert external interference.”
(Reporting by Nelson Renteria; Editing by Natalia Siniawski and Christian Schmollinger)
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