Nicaragua axes tax on imports from Central America

Nicaragua decided to eliminate charging VAT on Central American imported goods, after receiving complaints from Honduras and Guatemala, said José Adán Aguerri, president of the Private Sector Council, known as Cosep, in Guatemala.

The tax was applied in January 2012, as part of a reform of Nicaragua's tax laws which applied tax to personal hygiene and cooking products imported to the country.

Aguerri said the government of Nicaragua decided to take action with the complaints, passed on through Cosep, and will make the appropriate changes this week.

Source( in Spanish): La Nación