El Salvador’s President Nayib Bukele has announced a groundbreaking plan to abolish all taxes on technology innovation, computing, artificial intelligence (AI) development, and communication hardware manufacturing. This move is part of Bukele’s administration’s plan to modernize the country’s economy and stimulate growth in the technology sector.

In a tweet on March 24, President Bukele stated that the tax exemption would include income, property, capital gains, and import tariffs on technology innovations such as coding, software programming, AI development, computing, and communication hardware manufacturing. The bill is set to be presented to the country’s Congress next week.

The purpose of this initiative is to incentivize the growth of the technology sector in El Salvador and attract more foreign investment in the field. Bukele’s government has already been investing in infrastructure, education, and entrepreneurship programs to promote innovation and digitalization across various sectors.

If the bill is approved, it could make El Salvador an attractive destination for tech companies and startups looking to establish a presence in Central America. With tax exemptions on AI development, software programming, and hardware manufacturing, the country could see an influx of foreign investment and become a hub for technology innovation in the region.

This is a significant step towards the country’s economic growth and a move that could potentially lead to a rise in employment opportunities for its citizens.