El Salvador's New Law Targets Foreign Donations

In a significant move, El Salvador's Congress approved a law on Tuesday introducing a 30% tax on foreign transactions for local organizations, a measure that critics argue enhances state control over NGOs.

The legislation, passed with a majority of 57 votes to three, is set to take effect within eight days of its official publication. Lawmakers assert it will bolster transparency in local operations and influence, with mandatory registry for organizations.

According to legislator Suecy Callejas, the law addresses a regulatory gap, creating a registry to supervise foreign agents and safeguard national sovereignty against disguised external influence.

(With inputs from agencies.)