On January 19, 2022, the Law Initiative of Reforms by Addition to Law No. 554, Energy Stability Law was presented to the National Assembly of Nicaragua.
The initiative proposes that, given the exponential growth of the vehicle fleet in Nicaragua and the world, the use of cleaner energy sources and the technological reconversion be supported.
Therefore, there is a need to accelerate the transition of the transportation sector towards zero-emission vehicles such as electric vehicles that could be recharged by energy mostly from renewable sources. However, due to their high current cost, it should be promoted through the implementation of tax incentives.
The initiative to amend Law 554 states, with certain exceptions, that vehicles costing less than US$30,000 will be exonerated 100% of the customs import duty (CID), the excise tax (ET), and the value added tax (VAT). The detailed exoneration would be:
The proposed text designates the Ministry of Energy and Mines to, among other attributions, formulate and execute the national electric mobility policy, issue regulatory provisions for the authorization and operation of charging centers, and implement pilot projects to encourage the use of electric vehicles in the public or private sector.
Additionally, the Ministry of Finance and Public Credit will issue the tax list for the application of the exemptions once the law enters into force.
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