Sunday 26 September 2021

Costa Rica Food Industry Opposes Tax Exemptions for Food

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Costa Rica’s food industry is opposed to the executive decree which eliminates the exemption from payment of sales tax on some food products.

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From a statement issued by the  Cámara Costarricense de la Industria Alimentaria(CACIA) – Costa Rican Chamber of Food Industry:

The CACIA sent a note to the Finance Minister protesting against the publication in July this year, of Executive Decree 39732-H, which introduces changes to the regulations to the law on sales tax. It eliminates the definition of “canned” or “packaged” food which in the previous Decree referred to products which were canned or packaged in glass products. This change can affect exemptions applied to some products such as cheese, coffee, sausages, some seafood and corn.

This change in the rules creates a number of problems in interpretation and legal uncertainty regarding the correct way to determine if certain foods are exempted from payment of Sales Tax or not, which will in turn affect certain products in the basic basket.

Previously, the Regulations on the Law on Sales Tax stated: “packaged or canned goods: these are products contained in sealed tins or glass containers.” The new decree eliminates this definition.

CACIA is also oppoesed to legislative bill seeking to impose a new tax on plastic containers, an environmental tax the CACIA says will result in a rise in all processed and fresh foods sold in some kind of plastic container.

Source: CentralAmericandata.com, Cacia.org, Nacion.com

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