El Salvador’s Congress has passed a new law imposing a 30% tax on funds received by local organisations from foreign donors — a move widely seen as part of President Nayib Bukele’s broader crackdown on foreign influence in the country.
The legislation, approved on Tuesday with 57 votes in favour and just three against, targets what the government describes as “foreign agents.” It is expected to come into effect eight days after being published in the official gazette.
Supporters of the bill, including ruling New Ideas lawmaker Suecy Callejas, argue that it will increase transparency around how non-governmental organisations (NGOs) operate and influence the country. “We are filling a legal vacuum,” Callejas said. “The activities of foreign agents will be ordered and supervised through this new registry. It seeks to protect national sovereignty and avoid covert external interference.”
The law requires affected organisations to register with the government and stipulates that revenue generated from the new tax will be used for “general, public or social interest” purposes. However, critics say the law will significantly tighten state control over civil society and may hinder the work of NGOs, particularly those focusing on human rights and government accountability.
Human rights groups have expressed concern that the move mirrors similar efforts in authoritarian-leaning regimes to silence dissent and weaken civil society under the guise of national security. They warn that such regulations could stifle democratic debate and restrict the flow of international aid.
The measure adds to a growing list of controversial actions taken by President Bukele’s administration, which has faced international scrutiny over democratic backsliding despite high approval ratings domestically.
Melissa Enoch
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