Wednesday, 3 June 2020

Hacienda Plans To Rebate 1% Point of Sales Tax When Using Plastic

The Ministry of Finance (Hacienda) wants to stimulate the use of plastic instead of cash for better collection of sales and income tax
The Ministry of Finance (Hacienda) wants to stimulate the use of plastic instead of cash for better collection of sales and income tax

(QCOSTARICA) The Ministry of Finance (Ministerio de Hacienda) plans to return one percentage point of sales tax to people using their plastic for purchases.

The plan, if adopted, would mean consumers using plastic would effectively pay a 12% sales tax instead of 13%.

The deputy minister of Finance, Fernando Rodriguez, explained that the incentive does not apply only to debit cards, but that the Ministry of Finance will not apply it to credit cards. In the words of the Minister, “we don’t want to encourage borrowing”. Rodriguez added that credit card issuers already offer their customers incetinves for using plastic instead of cash.

- paying the bills -

When will the discount be applied? Rodriguez said discussions are ongoing with the banks (issuers of debit cards) to see if they can return the percentage at the point of sale.

“The idea is that from the tax they retain (the sales tax at the point of sale) they can separate the rebate and credit the consumer at once. We have to discuss that with them or at best a month later, but the idea is that people see the return of the money immediately,” said Rodriguez.

The Anti Tax Fraud bill (Ley para Mejorar la Lucha contra el Fraude Fiscal) that authorizes Hacienda to rebate the sales tax was approved in first legislative debate on September 9. It is currently in consultation with the Constitutional Court.

In addition to the rebate, the bill also requires businesses and professionals (ie lawyers, accountants, doctors, etc) to accept, as an alternative payment, credit and debit cards.

The measure is aimed at improving the collection of taxes on sales and income, discouraging cash transactions that cannot be tracked by the tax department.

- paying the bills -

This year, started in January, the state bank Banco de Costa Rica (BCR), allowed non-residents of Costa Rica once again to open a personal bank account (with a monthly deposit limit of US$1,000) and obtain a debit card.

The Banco Nacional (BNCR), Bancredito and the Grupo Mutual earlier this month have begun to also apply simplified banking. See our report The “New” Banking In Costa Rica.

It is expected that more banks will do so, returning Costa Rica’s banking system to a time where there were no restrictions on foreigners opening and operating a local bank account without the requirements of a Costa Rican cedula (national) or DIDI or DIMEX (foreign residency).

Source La Nacion

"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

More than 78% of the adult population in Costa Rica has a bank account

The most recent information from the Central Bank of Costa Rica...

Tomorrow Deadline To Declare And Pay Income Tax Without Penalty

Anyone who has carried lucrative activities or businesses in the country,...


One Cuban Family’s Long And Risky Journey To A New Life In The U.S.

Currently, there are almost 2,000 migrants in Panama shelters from Cuba, Haiti, Bangladesh, Nepal, Congo, Cameroon and India, after crossing the border from Colombia...

Five-day-old among the infected in Costa Rica; Confirmed cases now 1,084

(QCOSTARICA) As a new month begins and a phase of greater flexibility for restaurants, hotels, and other activities, commences, the Ministry of Health reported...

2020 Light Festival Suspended; Zapote in Doubt

(QCOSTARICA) San Jose mayor, Johnny Araya, this Thursday morning, announced the cancelation of the traditional year-end Festival de la Luz (Light Festival), held every...

Nicaraguan Government issues reciprocal sanitary measures for the entry of Costa Rican truckers

(QCOSTARICA) The Nicaraguan Government issued an agreement, which establishes reciprocal treatment for Costa Rican cargo carriers in its territory, in response to the measures...

Services and products would cost more in July

(QCOSTARICA) Tighten the purse strings, come July we can expect to pay more for rice, bread, beans, the pet products and even to buy...

4 Tips for College Bloggers

Taking up blogging in college is an engaging and profitable activity that can bring students as much entertainment as money to spend! Blogging suits nearly...

Let's Keep This Going!

To be updated with all the latest news and information about Costa Rica and Latin America.