Coffee: Export Tax Remains Solid

Thursday, October 17, 2019

The Ortega administration rejected the request of Nicaraguan coffee growers, who requested that the tax of one dollar per quintal exported be waived for the 2020-2021 harvest.
The decision to start charging from next year was published by the Ministry of Development, Industry and Commerce (Mific) in the October 15, 2019 edition of La Gaceta.

The funds collected from the producers will be managed by the National Commission for the Transformation and Development of Coffee Culture (Conatradec), as stipulated in the Law for the Transformation and Development of Coffee Culture, which was amended in August 2019.

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Aura Lila Sevilla Kuan, president of the National Alliance of Coffee Growers of Nicaragua, told that for Arabica coffee “… the taxable base with the new reform was 100 dollars per quintal and this calculation is made with the three positions of the last cycle, and the ancestor was handled well, then in the end we are stuck with a dollar tax; but our position is not to pay any tax for the situation we are in.

Regarding the destination of the funds collected, the article adds that “… Producers point out that up to date it is unknown in which the Government has invested the millionaire fund contributed by producers, given that since December 2013, when they began to withhold that contribution, has not provided a detailed report on the objectives achieved.

According to specific figures, from January to September 2019 the country has exported 152 thousand tons of coffee, of which 149 thousand are of the variety gold or Arabic, representing 98% of the total sold.