A. M. El Salvador closed january 2025 with a tax collection of US$357.4 million in Value Added Tax (VAT), which reflects an increase of 6.3% or US$21.1 million more compared to the same month of 2024. The Ministry of Finance highlighted that this result exceeded by US$10.9 million the initial projections included in the draft budget, consolidating a solid start for the fiscal year.
Courtesy
VAT collection was divided into two main items: imports contributed US$181.8 million, while tax returns totaled US$175.6 million. Both segments registered year-on-year growth of 5.3% and 7.3%, respectively, evidencing a sustained recovery in domestic consumption and cross-border trade activity.
This performance is framed in a context of record fiscal growth for the country. In 2024, El Salvador reached a total collection of US$7,648 million, up 7.1%, representing US$504 million more than in 2023, driven by improvements in tax management and evasion control.
The authorities attribute this success to policies to modernize the collection system, together with greater voluntary compliance by taxpayers. In addition, they emphasize that the additional resources will allow strengthening social programs and public investment in infrastructure.
With these results, El Salvador consolidates its position as one of the most dynamic fiscal economies in Central America, although experts warn about the need to maintain a balance between collection, expenditure, and reduction of public debt to ensure sustainability in the medium term.
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