Reform of the First Paragraph of Article 3 of the Micro and Small Business Support Law

This law reforms the Law to Support Micro and Small Enterprises to expand who can benefit: it now includes informally operating businesses that formalize within 24 months. It aims to help small business owners through tax relief and reduced administrative procedures to create jobs and strengthen the national economy.

Whereas it is the function of the State to ensure the balanced development of all sectors of production and to create opportunities under equal conditions for the economic improvement of citizens. For this reason, the State recognizes the activity of Micro and Small Enterprises as a matter of public interest to promote employment, social and economic welfare of all participants in these economic units.

Whereas by Decree No. 145-2018, dated November 7, 2018, the LAW FOR THE SUPPORT OF MICRO AND SMALL ENTERPRISES was approved, published in the Official Gazette "La Gaceta" dated November 28, 2018, Edition No. 34,806.

Whereas the Government of the Republic has undertaken a series of duly planned actions to promote the creation and expansion of industrial activity, commerce, and value-added services, with the purpose of stimulating an economic movement that translates into wealth generation for both entrepreneurs and their employees, which results in better living conditions for people and generates opportunities for the current and future Honduran labor market.

Whereas Micro, Small, and Medium Enterprises, as a fundamental pillar of the country's economic engine, must be stimulated in their regularization and formalization, in such a way as to contribute to the economic strengthening of the Nation, the generation of new and better jobs, and tax contributions to the Treasury.

Whereas the promotion of the Micro and Small Enterprises Sector requires a space for tax relief that allows, through tax relief and the deregulation of administrative processes, the stimulation of the creation, organization, equipment, and operation of these businesses, with the condition of generating new and better jobs for the available labor market.

Whereas in accordance with Article 205, Attribution 1) of the Constitution of the Republic, it is within the authority of the National Congress to: Create, decree, interpret, reform, and repeal laws.

Whereas it is the obligation of the State to ensure the maintenance of the national economy; being one of its fundamental objectives, to take measures for the improvement of the economic and social situation that result in better opportunities for all and that promote the development of Honduras.

Whereas palm oil cultivation is the third most important item as a generator of foreign exchange for the country's economy, making a great contribution within agricultural activity and contributing to social stability.

Whereas as a result of exogenous events, including the fall in the international price of palm oil and the effect on reduced production caused by climate change, a negative impact is foreseen in the cultivation and commercialization activities of palm oil, which will have repercussions in said sector and consequently in other sectors of the economy. This situation makes it necessary for the State to adopt measures that allow the mechanisms and resources necessary to maintain productive and financial capacity and thus not generate a serious social crisis with grave consequences for the country, due that if this situation worsens, approximately 18,670 producers, more than 18,000 families, extraction plants, refineries and exporters will be affected, as well as the indirect employment that this sector generates not only on the Atlantic coast of the country.

Whereas in addition to the foregoing, the high cost of agricultural inputs and reduced production due to the lack