(QCOSTARICA) – The legislator for the Alianza Demócrata Cristiana, Mario Redondo, warns of a plan by the government to introduce a new (and additional) property tax on vehicles, to “finance” the urban electric train system.
Redondo commented on Thursday the provision included in the “Ley de fortalecimiento de Incofer” (law to strengthen the Incofer, the country’s railway).
The legislator says that government has tried to take a percentage of the tax on fuels, but the Ministry of Finance nixed it, saying the tax revenue is already distributed subsequently to existing laws.
Thus, the initiative now intends to add a property tax depending on the vehicle and its age.
Although the legislator was no forthcoming on the details of the tax, he did say that “it (the new tax) would make worse an already difficult economic situation of Costa Ricans.”
Gotta laugh when a legislator argues against a motor vehicle tax on the grounds that it “would make worse an already difficult economic situation of Costa Ricans.” Gotta wonder which Costa Ricans he represents–the 25% with motor vehicles or the 75% without them? Methinks the 25%.
This said, while I’d have to look at the details to reach a firm opinion, even I suspect that the taxes on motor vehicles and fuel have reached their limit and probably shouldn’t be increased. I am a strong believer in motor vehicles paying their own way, rather than being subsidized (as they are in the US) but at some point increasing taxes is simply unfair. Not sure, but I think Costa Rica has already taxed driving fairly and increasing those taxes may not be fair.
There are other ways to encourage other modes of transportation, and it may be time for Ticos to look into them.