Sunday 11 April 2021

Otto Guevara: Calculation of Taxable Value of Cars “Is Illegal”

Legislator Otto Guevara recommends wait before paying the 2016 marchamo.
Legislator Otto Guevara recommends wait before paying the 2016 marchamo.

QCOSTARICA – If you have yet to pay your 2016 Marchamo, after all it is only the first day, hold off a bit. Legislator and former presidential candidate for the Movimiento Libertario (ML) party says the tax value used by the Ministerio de Hacienda (Ministry of Finance), raising the cost of the 2016 marchamo is “abusive” and “illegal”.

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See: Don’t Just Accept It, File For A Reduction

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[/su_pullquote]The legislator explained that Hacienda should have published last January “the values that it would use to calculate the tax” portion of the marchamo and “the publication was not made”, which, in his opinion, would make the tax illegal.

Guevara said that according to his approved motion, Finance Minister Helio Fallas, is obligated to appear before the Legislative Finance Committee on Public Income and Spending (Comisión de Control de Ingreso y Gasto Público de la Asamblea Legislativa) to explain the methodology used.

Also compelled to appear before the committee are an official of the School of Statistics at the University of Costa Rica (UCR), that developed the methodology and the former director of Taxation, Francisco Villalobos.

“We have a model of confiscatory government. What we Ticos pay in taxes and rates is shameful. We are charged a right to transit on ancient roads in poor condition. The cars fall apart on them, depreciate and the government forces us to keep them in good condition with inspections and expensive spare parts and to boot it is valued higher every so they can collect more taxes. We pay expensive gasoline due to high gasoline taxes and spend more account of congestion because of public incompetence. As we see it’s all a vicious and perverse circle. The Government is an economic aggressor,” Otto Guevara.

Guevara has asked the head of the committee, Mario Redondo, that the three appear this week.

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The legislator added that it is “unacceptable” that Hacienda place the burden on vehicle owners to file for a reduction (a complaint) to the tax department, if the tax value is unrealistic. “This forces people to hire legal counsel and spend time to fight the tax authorities”, said Guevara, adding that he recommends people to wait the outcome before paying.

On the social media, many have posted the tax value on their vehicle increased this year, some as high as ¢2 million colones, totally out of line with the value of their vehicle.


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