El Salvador’s Congress has enacted a new law that imposes a 30% tax on transactions made by foreign donors to local non-governmental organizations (NGOs). This law, aimed at curbing what the government terms “foreign agents,” was passed with a significant majority in the Congress, receiving 57 votes in favor and just three against.
The legislation is set to take effect shortly after its publication in the official gazette. Proponents of the law argue that it is designed to enhance transparency regarding the operations and influence of local organizations within the country. A new registry will be established, requiring organizations to register and ensuring that the activities of foreign entities are monitored under legal regulations.
According to ruling party lawmaker Suecy Callejas, this law aims to address a previous “legal vacuum” regarding the regulation of foreign NGOs, framing it as a measure to protect El Salvador’s national sovereignty and prevent covert external interference.
This recent development is part of a broader trend observed in several countries, including Israel, where lawmakers have also proposed similar restrictions on foreign-funded NGOs. These legislative moves often spark intense debates about the implications for civil society, freedom of expression, and the effects on organizations that play critical roles in providing social services.
While some view the tax as a necessary regulatory measure to enhance accountability, critics argue that it may lead to increased state control over civil society and may inhibit the ability of NGOs to operate effectively. As this situation unfolds, it is crucial for stakeholders to engage in discussions about the impact of such legislation on human rights and the functioning of civil organizations.
This law could potentially reshape the landscape for NGOs in El Salvador, emphasizing the importance of transparency and accountability. However, ongoing dialogue will be essential to ensure that these regulations do not stifle the vital contributions that NGOs make to society.
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