Grocery Shopping in Santa Teresa. Photo:  Puravidaculture.com
Grocery Shopping in Santa Teresa. Photo: Puravidaculture.com

QCOSTARICA (Crhoy.com) Higher operating costs than in the rest of Central America is the justification given by retailers about the price difference in the region for products manufactured in Costa Rica.

In recent days the social networks have been abuzz with a series of images of items produced in Costa Rica that have lower prices in other Central American countries.  See Tico Products Sell At Almost Half Price Abroad Than At Home?

Retailers explain that several factors elevate the price in Costa Rica, with energy costs topping the list, followed by payroll taxes, withholding (of taxes), costs indexed to inflation (such as rents) and practices by wholesalers.

According to Tereza Vasquez, executive director fo the  Cámara de Comerciantes  Detallistas  (Retailers Association), currently there are “price distortions” that originate from the manufacturers and/or wholesalers, such as retailers not receiving discounts for their small size, for example.

Speaking on Radio Planca, Vasquez says that electrical costs, which also is a major complaint by the industrial sector and the tax burden affect prices in the country.

“It varies from country to country, it all has to do with rent, electricity, wages, taxes and other items that retailers have to cover,” she said, taking the opportunity to comment on the new retention of 2% on future income tax that went into effect last week.

When all is said, domestic factors are the cause of higher prices in the Costa Rica, although the same products sold at lower prices throughout the region are manufactured in the country.