Sunday 25 July 2021

Attorney General: Decree Restricting Importation Of New Cars Is Unconstitutional

Paying the bills


Today’s Vehicle Restriction July 25: EVENS CANNOT circulate

QCOSTARICA - Today, Sunday, July 25, plates ending in...

Carlos Alvarado foresees the lifting of sanitary restrictions for the last quarter

QCOSTARICA - Costa Rica President, Carlos Alvarado, in Guanacaste...

Costa Rican surfer in race against time to Tokyo

QCOSTARICA - It was a race against time for...

Covid-19 robbed Costa Rican population 60,170 years of life between the end of January and June

QCOSTARICA - Covid-19 would have caused the Costa Rican...

More than 170,000 will benefit from projects for access to drinking water in Guanacaste

QCOSTARICA - More than 170 thousand people from the...
Paying the bills


It restricts the freedom of commerce and implies an “intrusion into the market,” says Attorney General

Q COSTA RICA – “It restricts the freedom of commerce and implies an intrusion into the market,” says Costa Rica’s Attorney General, Julio Jurado, commenting on the decree emitted by the government last August, that prevents importers of new vehicles from introducing into the country late-models before the month of September.

This year, for example, 2018 models cannot be in the market before September.

- Advertisement -

The Attorney General considers the government decree restrictive of freedom of trade, unconstitutional, and lacking the legal authority.

Jurado presented his written arguments before the Constitutional Court or Sala IV as it is commonly refered to, that is studying the action of unconstitutionality presented by the Asociación de Consumidores Libres (ACL) – Association of Free Consumers – against the decree promulgated by President Luis Guillermo Solis and the Ministry of Finance in August 2016.

Jurado added, “the restriction cannot be classified as a reasonable and adequate measure to achieve uniform fiscal (tax) values.”

According to the Attorney General, the decree is also unreasonable because the Tax Administration has “extensive powers”, which would allow it to seek alternative mechanisms that are proportionate to address the situation it seeks to regulate by decree.

The government and the Ministry of Finance argue that the early importation of late-model vehicles, devalues the rest of the vehicles in the country, in effect lowering their fiscal (tax) value. Since the fiscal value is used to calculate the property tax payable for the year,  included in the cost of the Marchamo (circulation permit), the lower values will mean a lower tax revenue.

For its part, the Association of Free Consumers argued before the Constitutional Court argues that the decree violates freedom of trade, freedom of contract and freedom of enterprise, as well as the rights of choice, among other points of law.

- Advertisement -

Rogelio Fernández, vice-president of the Association of Free Consumers, said he was happy that the Attorney General is on their side. “We are hopeful the action will finally be declared valid (accepted by the Court), because the State lawyer himself is concluding, like us, that the decree is unconstitutional,” he said.

For his part, Fernando Rodríguez, Deputy Minister of Finance, said he was “surprised” at the Attorney General’s position.

There is no date for the Constitutional Court to decide on the merits of the action. Such processes may take several months or even years.

Source La Nacion

- Advertisement -

- Advertisement -
Paying the bills
"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

Related Articles

Franggi Nicolás: “Marchamo must be lowered and not finance corruption”

QCOSTARICA - The government should not oppose the reduction of the...

Government will now boost house tax of ¢150 million onwards

QCOSTARICA - Following the advance of the International Monetary Fund (IMF)...

Subscribe to our stories

To be updated with all the latest news, offers and special announcements.

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

Add to Collection

No Collections

Here you'll find all collections you've created before.