Monday, 30 November 2020

Court Rejects Suspension Marchamo Payment

Owners of vehicle have up to December 31, 2104 to pay the 2015 Marchamo. After that face fines and/or confiscation of license plates and/or vehicle.

QCOSTARICA – Fearing leaving drivers without insurance and medical coverage starting January 1, 2015, the Tribunal Contencioso Administrativo (Administrative Court) refused to suspend the collection of the Marchamo (circulation permit), the preliminary injunction requested by legislator Otto Guevara, who denounced alleged irregularities on the part of the  Instituto Nacional de Seguros (INS) and the  Ministerio de Hacienda (state insurer and ministry of Finance, respectively).

The Court sided with INS who argued that the suspension of payment would leave the Seguro Obligatorio de Vehículos Automotores (mandatory insurance) without proper funding and it could not provide medical attention to the injured in a traffic accident.

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“The suspension undermines the proper care for those who unfortunately have a traffic accident after January 1, 2015 where a vehicle involved did not pay the Marchamo, since the cost of the care would not be covered by any policy,” argued the INS.

Legislator and former presidential candidate for the Movimiento Libertario, Guevava says he doesn’t argue with the INS’ position, because it is up to Hacienda to publish the list of update values used for the calculation of the property tax and the collection, which has not been done.

The legislator had asked the Court that if payment was not suspended, as a preliminary measure to fix the 2015 Marchamo at the 2014 rate. However, the INS argued that if the 2014 values would be charged, most vehicle owners would pay a higher amount than that for 2015.

In its argument, the INS estimates that only 13% of vehicles are payment more for 2015 over 2014, meaning that for 2015 a total of 87% of all vehicles are paying less for next year over this year.

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