Tax Evasion

Customs Director Marco Tulio Abadíe said Honduras loses about L1 billion annually to cigarette smuggling, a loss that reduces tax revenue and harms the economy, while only six companies operate under the authorized economic operator program designed to secure trade.

Dante Mossi, former president of the Central American Bank for Economic Integration, criticized a proposed reform excluding bonuses from income-tax calculations, warning it could enable employers to reclassify wages as tax-free bonuses and erode government revenue.

Former Central American Bank president Dante Mossi cautioned that a proposed reform to exclude bonuses from income tax (ISR) calculations would create tax-evasion opportunities and reduce government revenue, reversing two decades of IMF-backed reforms.