COSTA RICA NEWS — The Ministerio de Hacienda (Ministry of Finance) is working on a bill that aims to review and eliminate tax exemptions that have no substantiated legal justification, and create a new regulatory framework.

According to the Ministry of Finance, income not received in 2013 due to the existence of exemptions and special tax regimes was equivalent to 5.93% of GDP, of which 3.7% corresponds to the General Sales Tax, 1, 9% to income tax and 0.3% for other taxes.

Ameliarueda.com reports that “… The existing tax exemptions meant that last year, the Ministry of Finance did not collect an amount which represents 5.93% of Gross Domestic Product (GDP). The figure is higher than the fiscal deficit of 5.8% that year.

In addition to the proposal to revise the current exemptions, the Ministry of Finance is also “… Evaluating other mechanisms to replace these tax benefits, such as providing subsidies through the budget. ”

Source: Ameliarueda.com