QCOSTARICA – President Carlos Alvarado, signed on Friday the law reducing the vehicle property tax on the 2021 Marchamo, awith which he authorizes a reduction in the rate of the vehicle property tax.
The signing took place at Casa Presidencial in the morning, log with the Ministers of Finance Elian Villegas and Minister of Transport Rodolfo Méndez Mata.
By 6:00 pm, the law was officially published in La Gaceta, giving the law effect for the November 1 deadline to be applied to the collection of the annual circulation permit starting on Monday.
“This law arrived yesterday (Thursday) afternoon and I have signed it immediately to allow time for it to take effect before the collection of the 2021 Machao begins and thus be able to give effective relief to the pockets of hundreds of thousands of people,” Alvarado said.
This Thursday, the Legislative Assembly approved in a second and final debate the reduction which will apply to vehicles that have a tax value less than ¢15 million.
For vehicles valued at less that ¢7 million colones, the reduction is 50%. Vehicles with a tax value between ¢7 million and ¢10 million will have a 25% reduction on that tax, while vehicles valued between ¢10 million to ¢15 million, the reduction is15%.
Likewise, the 50% reduction will apply to all light and and heavy-duty vehicles (plate CL and C respectively), buses, tourism, agricultural machinery, rental cars and public service.
As for motorcycle owners, those with a value of less than ¢1 million will be exempt from Value Added Tax (VAT).
Ships, boats and aircraft must pay 100% of the Marchamo
The property tax on vehicles constitutes about 63% of the total payment each year.
This tax reductionwill open a gap of at least ¢50 billion colones in revenue of the Government expects to cover its end-of-year expenses, such as the Aguinaldo (Christmas Bonus) for civil servants.