Q COSTARICA — Several business chambers spoke out against a bill that would increase the cost of carbonated beverages by 10%, arguing that it would negatively impact producers, importers, and small businesses.
These are soft drinks like Coca-Cola, Pepsi, and others, which are associated with diabetes and obesity due to their excessive sugar content.
The tax revenue would be allocated to the Instituto Costarricense del Deporte y la Recreación (ICODER) — Costa Rican Institute of Sports and Recreation — to promote sports throughout the country.
Despite this, the private sector points out that the bill would increase the price of a mass-consumption product in small businesses such as corner stores, soda fountains, restaurants, and convenience stores.
From an economic perspective, an increase in the final price of carbonated beverages could lead to a drop in consumption and reduced sales, putting additional pressure on the sustainability of thousands of Pequeña y Mediana Empresas (PYMES)—small and medium-sized enterprises (SMEs).
They also stated that international experience demonstrates that selective taxes on mass-market consumer goods incentivize smuggling and illicit trade, weakening formal commerce, reducing effective tax revenue, and exposing consumers to unregulated products.
Similarly, they warned that this measure could complicate international trade, particularly with the United States, Costa Rica’s main trading partner, at a time when negotiations are underway aimed at eliminating trade barriers.
Additionally, the text incorporates new regulatory burdens, such as the obligation to certify theoretical yields of post-mix syrups, which generates additional costs, administrative discretion, and affects the legal certainty of businesses.
The public statement was signed by the Unión Costarricense de Cámaras y Asociaciones del Sector Empresarial Privado (UCCAEP), the Cámara de Industrias de Costa Rica (CICR), la Cámara de Comercio de Costa Rica (CCC) and the Cámara Costarricense de la Industria Alimentaria (CACIA).