Why World's First Bitcoin Legalising Country El Salvador Has Introduced $1000 Tax On Indian Travellers

Central American country?El Salvador, which holds the title of being the?world's first nation to accept?bitcoin?as a legal tender, has introduced an additional tax on travellers coming from India?and Africa.

How Much Tax Has El Salvador Introduced?

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El Salvador has announced that it will be?charging passengers from?Africa?or India a $1,000 fee. People travelling on passports from India or any one of more than 50 African nations will be obliged to pay the fee, El Salvador’s port authority said in a statement on its website last week.

Why Is the $1000 Tax Being Levied?

The $1000 tax is a move to curb migration to the US through the Central American country of El Salvador.?Including VAT, the additional cost is $1,130 for travellers from the affected countries. The money raised through the tax?will be?used to improve the nation’s main international airport, the authority added.

El Salvador?President?Nayib Bukele this week met Brian Nichols, US assistant secretary of state for Western Hemisphere affairs, to discuss?“efforts to address irregular migration,” among other topics. U.S. Customs and Border Patrol encountered a record 3.2 million migrants across the country in fiscal year 2023, which ended in September, as per a Bloomberg report. Many migrants from Africa and elsewhere are believed to make it to the US via Central America.

When Will The Tax Become Effective?

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The new $1000?tax?has already?become effective as of October 23, 2023. Airlines will be required to notify Salvadoran authorities daily of passengers who come from a list of 57 countries in Africa and India.??

Colombian airline Avianca, which is one of the hub’s biggest users, has already begun notifying travellers that passengers from the list of countries must pay the mandatory fee before boarding flights to El Salvador.

Also Read:?Revealed! El Salvador President Shares Beautiful Glimpses Of World's First ‘Bitcoin City’

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Which Other Countries Are Imposing Additional Taxes?

The additional tax levied by El Salvador comes at a time when?many countries across the world are planning or have started imposing additional fees or taxes on their visitors or tourists. Barcelona, Portugal, Valencia, Thailand, Venice, Austria, Belgium, Bhutan, and France are among such nations. Here's why?they are doing so.

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