A. M. 
The Government of El Salvador is experiencing a notable increase in tax collection, according to data provided by the Ministry of Finance. During the first seven months of the year, the State has received US$4,747 million in current revenues and contributions, representing an increase of 8.5% compared to the same period last year, equivalent to an additional US$370 million. This growth reflects a positive performance of the country’s tax system.
The numbers also indicate that the collection target set in the budget has been exceeded by 2%, which translates into US$94.1 million more than projected. This underscores the dynamism in the payment of taxes and the Government’s ability to exceed its collection expectations. The main source of this increase has been income tax (ISR), which has generated US$2,109.7 million through july, with a year-on-year growth of 8.5% or an additional US$166 million.
Within ISR, returns have contributed US$704.7 million, while withholdings have accounted for US$903 million of the total. Value added tax (VAT) has also shown an outstanding performance, accumulating US$2,030.8 million through july, with a growth of 12% over the same period of the previous year. Within VAT, declarations have reached US$941.6 million, and the amount received for imports has been US$1,089.2 million.
The Minister of Finance, Jerson Posada, has projected that tax collection by the end of this year will grow by about US$350 million compared to 2023. This positive expectation is attributed to economic dynamism and ongoing investments. The authorities of the Ministry of Finance have also highlighted the reduction of the tax evasion gap by more than US$1.6 billion, thanks to the implementation of the Anti-evasion Plan, which includes measures such as the submission of notices on evaders to the Fiscalía General de la República (FGR) and payment facilities by the Dirección General de Impuestos Internos).
These efforts and results reflect an effective management of tax collection and the Government’s commitment to improve the transparency and efficiency of the tax system in El Salvador.
