Why Nicaragua Ordered Churches To Pay Taxes

Nicaragua has mandated that churches and religious entities pay income tax and has forced the closure of more than 150 non-governmental organizations (NGOs), according to an official statement released Thursday.

This move is part of an ongoing crackdown against opponents of President Daniel Ortega.

The resolution, which revokes the previous tax exemption for these organizations, was published in the official La Gaceta newspaper and signed by Ortega.

Under the new rules, these entities will now face taxes of up to 30 percent on their annual income.

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In addition to the tax changes, the government has shut down 151 NGOs.

This action follows a recent decision to close approximately 1,500 NGOs, which the opposition in exile has condemned as an assault on civil society.

Since 2018, following protests against Ortega’s regime that led to a violent crackdown—deemed by the United Nations as resulting in over 300 deaths—the government has imprisoned hundreds of critics, both real and perceived.

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The latest announcement represents the largest single instance of targeting NGOs to date. Over 5,200 civil organizations have been dissolved since 2018.

The United States condemned the “unjust” closures, with Brian Nichols, the State Department’s assistant secretary for Western Hemisphere affairs, criticizing the move.

Former Nicaraguan presidential candidate Felix Maradiaga, now in exile in the United States, called the actions a “dark new chapter” in Ortega’s systematic repression.

The Inter-American Commission on Human Rights (IACHR) also condemned the decision, stating it exacerbates repression and undermines civic and democratic space in Nicaragua. The United Nations described the situation as “deeply alarming.”

Ortega, who first came to power in 1979 as a junta leader after leading the Sandinista movement that overthrew the US-backed Somoza dictatorship, was elected president in 1985.

After being defeated in the 1990 elections, he returned to power in 2007 and has since eliminated presidential term limits and consolidated control over all branches of government.

His regime is currently under sanctions from both the US and the European Union.