Monday 20 September 2021

Government Decides To Propose A 13% VAT

But the government does not rule out that the tax be 15%, it depends on the consensus of other parties

Paying the bills

Latest

1,308 complaints about parties and agglomerations this weekend

QCOSTARICA - Police actions to enforce health regulations do...

ELON MUSK LAYS OUT WHEN TESLA WILL START RECEIVING BITCOIN

Following the series of accusations and backlash levelled against...

Top 3 Tips for Better Online Casino Security

The gambling industry has prospered over the years and...

Today’s Vehicle Restriction September 20: Plates ending in “1 & 2” CANNOT circulate

QCOSTARICA - For today, Monday, September 20, vehicles with...

Athleta women’s brand opened its first store outside North America in Costa Rica

QCOSTARICA - Gap Inc.'s Athleta brand announced the opening...

Carlos Alvarado: Vaccine retention ‘delays global solution and increases risk of new virus variables’

QCOSTARICA - Costa Rica President Carlos Alvarado showed his...
Paying the bills

Share

The Chief of Staff, Sergio Alfaro and Helio Fallas, Minister of Finance, in a discussion with legislators over the government’s proposal of a 13% value added tax. (Mayela López, La Nacion)

Being more feasible to obtain the 29 votes needed in Congress, the Government decided to propose transforming the current 13% sales tax to a Impuesto Sobre el Valor Agregado (IVA)- Value Added Tax (VAT) – instead of the 15% it had been promoting.

The Vice Ministro de la Presidencia (Deputy Chief of Staff), Luis Paulino Mora, explained the draft bill, Ley de Fortalecimiento de las Finanzas Pública, that the Executive Power will put forth before Legislators.

- Advertisement -

The VAT would include taxing items such as legal fees, streaming television services, rentals and computer services, among others, that are not taxed today under the sales tax policy.

The Government is urging the approval of its proposal as it faces an accelerate deterioration of the State’s finances. 2016 closed with a 5.2% deficit in the Gross Domestic Product (GDP) and the Central Bank (BCCR) estimated this year would increase to 5.9%.

However, after a review last July, the BCCR projection was revised to a 6.1% fiscal deficit for this year and 6.8% for 2018.

Molina said the VAT proposal has the support of legislator of the Liberación Nacional (PLN) and would expect support from the Acción Ciudadana (PAC), the ruling party.

Of the six presidential candidates, one of which will form the next government, only three, Antonio Álvarez (PLN), Rodolfo Piza (PUSC) and Edgardo Araya (FA), fully support the government’s proposal.

For his part, PAC candidate, Carlos Alvarado, said he leans more to a 15% VAT tax and would have to analyze the impact of the lower tax would have on tax revenues before giving his support.

- Advertisement -

The Libertarian Otto Guevara is not in favor of the VAT. The perennial presidential candidate said he is more in favor of selling off government assets, such as the State bank, Banco de Costa Rica and the State insurer, the Instituto Nacional de Seguros (INS) and reduce public spending and reduce bailing out of public entities.

 

 

 

- Advertisement -

 

- Advertisement -
Paying the bills
Ricohttp://www.theqmedia.com
"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

Will that be Cash or Sinpe Móvil?

QCOSTARICA - Sinpe Móvil is easy to use. From your phone,...

Finance Minister rules out VAT increase and tax on bank transactions

QCOSTARICA - The Minister of Finance, Elian Villegas, totally ruled out...

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.