On Thursday night (23), El Salvador’s President Nayib Bukele announced via Twitter that he would present a bill to Congress next week that aims to zero taxes on activities related to technological innovations.
The measure includes eliminating taxes on income, property, capital gains, and import tariffs on technological innovations, such as software programming, coding, applications, artificial intelligence development, and computer and communications hardware manufacturing.
Bukele is known to be a big proponent of Bitcoin, and in September 2021, he made the cryptocurrency legal tender in El Salvador.
This country was the first to adopt the measure and was followed by the Central African Republic in 2022.
The cryptocurrency community well received the announcement from the president of El Salvador.
Changpeng “CZ” Zhao, the creator of Binance, responded to Bukele’s tweet with a clapping emoji.
The measure is an important step to encourage innovation and technology in the country and could help attract tech companies to set up shop in El Salvador.
The bill still needs to be approved by Congress, but it is expected to receive support from Bukele and other leaders in the country.