This Thursday morning, before meeting with legislators at the Museo de Niños (Children’s Museum), the Minister of Finance announced that the government will propose the creation of a solidarity tax on both the wages of the private and public sector employees to help finance a support plan for those who lost their jobs for the coronavirus emergency.

Carlos Alvarado and Rodrigo Chaves (right) minister of Finance

According to Finance Minister Rodrigo Chaves, the tax would begin to be collected on monthly salaries of ¢500,000 and up with a 5% contribution and would increase the higher the salary is up to 25%, added Planning Minister Pilar Garrido.

Chaves literally said: “All of us who are blessed to have the job will contribute. That is the proposal. It won’t be for low-income people. It will start in more or less with a very small contribution for those who earn ¢500,000 (monthly) or more, 5% and, from there, it will go up as people earn more, where those who earn ¢4.3 million (monthly) or more will make a greater contribution, at least for the time that is necessary”.

The Minister of Planning, Pilar Garrido, also said of the tax: “Right now, it is being visualized from a certain amount that is around more than ¢1 million (monthly) and is differentiated, let’s say, people who earn less than that, 5%, the maximums, 25%, but everything is still under development”.

According to Chaves, the idea is to generate resources to add ¢360 billion colones, along with two other measures, to grant subsidies to people unemployed by the crisis.

The Minister of Health, Daniel Salas, made the same announcement during the mid-day covid-19 briefing, using the same figures stated earlier by the Finance Minister.

However, later, President Carlos Alvarado denied that he intended to collect a wage tax.