Saturday 4 February 2023

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

The government opposes a reduction saying it will generate a tax gap

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QCOSTARICA – The government should not oppose the reduction of the 2022 Marchamo, says PLN legislator Franggi Nicolás, who last May present a bill to reduce the cost of the annual circulation permit, given that the economic situation has not improved and that vehicle owners have had to deal with the vehicle restriction throughout the year.

Franggi Nicolás, PLN legislator, is the proponent of the bill to reduce the 2022 Marchamo

Nicolás’ statement took on more weight following the supposed network of bribes and corruption in public works, in the case known as “cochinilla” that saw the arrest of more than 30 people, including officials of the Conavi – the national roads council – and the two owners of the construction companies with major road works contracts.

“Until corrective measures are taken to stop the corruption that is occurring in the Conavi, I prefer that Costa Ricans feel a greater relief in their pockets this year with a reduction in the Marchamo, that with our money to Conavi paying surcharges on highway (contracts), to feed the pockets of a few civil servants and businessmen,” said Nicolás.

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The bill also includes a reduction in the canon currently paid by taxis and public transport and does not apply any benefit to the president, ministers, deputies and magistrates.

The government says by lowering the cost of the Marchamo would generate a tax gap. The greatest percentage of the annual Marchamo is the property tax on vehicles, followed by mandatory insurance and other items.

“It would be a momentary relief, but then they will ask me what I did,” said President Carlos Alvarado in opposing the legislator’s proposal.

Last year, the government finally gave in, almost last minute, to reduce the 2021 Marchamo (the annual circulation permit for this year), following the same arguments, save for the corruption scandal. See Hacienda and INS run to apply reduction in 2021 Marchamo



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