Background and Context
El Salvador’s new law on “foreign agents,” championed by President Nayib Bukele, came into effect on Saturday amidst criticism from NGOs alleging the institutionalization of persecution against them. The law was approved by the pro-government Congress on May 20 and bears similarities to regulations in Russia, Venezuela, and Nicaragua aimed at hindering the work of NGOs. It imposes a 30% tax on donations received.
NGOs’ Concerns and Government Defense
Alejandro Díaz, from the Tutela Legal NGO, stated that the law is “quite discretionary” and stigmatizes human rights and social projects work, affecting the “poor majority” of the population. President Bukele defended the initiative in a recent speech, asserting that the law ensures those coming to advocate for political interests pay their taxes like everyone else.
However, the Foundation for Due Process argued that the foreign agents law is a “frontal attack” on NGO work, inspired by similar regulations in Hungary, Russia, Nicaragua, and Venezuela. Katia Salazar, a representative of this Washington-based foundation, claimed that the law aims to “silence critical voices” against the government rather than regulate or transparentize NGO activities.
Amnesty International’s Criticism
Amnesty International criticized the regulation for imposing arbitrary restrictions on freedom of association, expression, and the work of human rights organizations. Ana Piquer, Amnesty’s Director for the Americas, warned that instead of ensuring transparency, the law institutionalizes persecution against organizations and serves as another tool to silence, weaken, and dismantle independent civil society.
Key Provisions of the Law
The law mandates a 30% tax on any financial transaction, disbursement, transfer, or import of goods and materials for foreign agents operating in the country. NGO members must register within 90 days in the Foreign Agents Registry at the Ministry of Interior.
Violations and delays in submitting required information will result in fines up to $250,000.
Key Questions and Answers
- What is the new law about? The law targets foreign-funded NGOs in El Salvador, imposing a 30% tax on donations and requiring registration within 90 days in a Foreign Agents Registry at the Ministry of Interior.
- Why are NGOs criticizing the law? Critics, including Amnesty International, argue that the law imposes arbitrary restrictions on freedom of expression and association, institutionalizes persecution against NGOs, and lacks transparency.
- What does the government say about the law? President Bukele and his administration claim that the law ensures foreign agents pay their taxes like other entities, addressing potential political interests.
- What are the consequences of not complying with the law? Violations and delays in submitting required information will result in fines up to $250,000.
