The President of El Salvador, Nayib Bukeleannounced on Tuesday that his government will suspend tariffs on imported basic food products for ten years, in an attempt to mitigate price increases.
Measures against price increases appear to be a new crusade of Bukele after pacifying the country with a “war” against gangs started in March 2022.
“Today [martes]I will send a proposal [al Congreso] to suspend all tariffs on all products in the expanded basic basket, as well as on 70 other food products, for a period of ten years“, he reported Bukele on social network X.
However, independent economist Rafael Lemus, a critic of Bukelestated that this measure will be “ineffective”, since most foods do not pay import tariffs.
“Ineffective measure, most have a 0% tariff rate”, wrote Lemus on the X network, stating that Bukele “encourages importing versus producing locally”.
Most of the legumes, vegetables, cereals, oils and milks sold in El Salvador are imported.
Last week, authorities began inspections in supermarket chains after Bukele ordered to combat the “mafias“businesses due to the rise in food prices, which exceeds 40% annually.
Following Bukele’s announcement, the opposition deputy Claudia Ortiz He stated that since 2021 his party Vamos has requested to eliminate the tax on food to “protect the most vulnerable people” and stated that the country must “betting on agricultural production”.
The state-run Consumer Protection Agency has requested information from the six main supermarket chains regarding the price increases.
Also Bukele ordered an investigation into the increases”unjustified“The prices of insecticides and repellents in pharmacies, hardware stores and supermarkets are skyrocketing amid a dengue outbreak that has killed four children.
The president also opened mobile markets in an attempt to contain the unprecedented rise in food prices.
The mobile market programme is coordinated by the Ministry of Agriculture to promote direct sales and thus avoid intermediaries in strategic points of the country.
Inflation in El Salvador’s dollarized economy was 1.48% in the 12 months to June.
The cost of the basic food basket per family, according to the Central Reserve Bank, is 256.56 dollars per month, compared to a stagnant minimum wage of 243 dollars in the agricultural sector, 359 in the maquila sector and 365 in commerce and industry.
On July 5, the president called on radio and television to “importers, wholesalers, distributors and marketers of food” to stop “the abuses”.
“Stop abusing the Salvadoran people [con los precios] or don’t complain later“, he said then.
Source: Gestion
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