Transparency International has called on El Salvador’s legislative assembly to reject the ‘Foreign Agents Bill’ sponsored by the government of President Nayib Bukele that will impose a tax of 40 per cent on all foreign transactions, including donations.

The anti-corruption body noted that the bill would severely limit the work of civil society organisations and independent media. 

If passed, the law will place a tax of 40 per cent on all foreign transactions, including donations, even if receivers are non-profit organisations. Organisations that fail to comply with the bill face a shutdown, fines up to $250,000 and a prison sentence between two and five years. 

“This draft bill is a blatant attempt to control and limit the work of CSOs, which benefit citizens with access to basic rights including healthcare, education, fight against corruption, prevention of violence, among other issues,” the anti-corruption body said on Wednesday.  

The ‘Foreign Agents Bill’ by Mr Bukele would require entities and people who receive international funding or support to register as ‘foreign agents’ with the interior ministry.

Organisations acting as ‘foreign agents’ will be prohibited from carrying out “political activities” that aim to alter “public order” or that “endanger or threaten national security or the social and political stability of the country.

Transparency International noted that if the bill was passed, the government would gain unparalleled powers and may control, limit the activities of civil society organisations in El Salvador and target NGOs, activists and human rights defenders. 

If approved, the anti-corruption body’s chapter in El Salvador Fundación Nacional para el Desarrollo (FUNDE) would fall under the new regulations. 

“Our national chapter, FUNDE, has been a key player in the fight against corruption and promoting democracy and human rights in El Salvador. We are deeply concerned about how this will affect their ability to carry on this crucial task as well as the work of many social organizations and movements in the country,” explained Delia Ferreira Rubio, chair of Transparency International.