The Salvadoran Treasury collected $151.9 million in 2023 from taxes applied to gasoline and diesel alone. In comparison, the agency collected around $49.7 million from a tax on gasoline specifically, commonly known as the “war tax.” This tax, also known as the FEFE tax, was collected since 1981 and increased by 123.8% from 2022 to 2023. Another significant tax is the special contribution to public transportation, which saw a 119% increase in collection from January to December 2023. Additionally, Salvadorans pay $0.10 on each gallon of fuel they buy, a contribution that has been in effect since 2007.
Another tax that El Salvadorans contribute to is the Road Conservation Fund (Fovial). According to Treasury reports, the income collected for Fovial in 2023 was $46.4 million. However, the details of how much funds Fovial receives and how they have been used are not disclosed.
Despite these revenue gains, the report does not specify how much VAT money was collected from gasoline or diesel sales. Moreover, the more expensive a gallon of fuel is, the more funds enter the state’s coffers. In 2023 alone, there were several consecutive price decreases in hydrocarbon prices.