Tuesday 15 June 2021

San Jose Mayor Asks For Municipalities To Be Exempt From Fiscal Rule

The San Jose mayor also said that a tax reform should be progressive and must be guided by the principle that the rich pay more tax than the poor.

The mayor of the province of San José  and former presidential candidate, Johnny Araya,  in his speech in the civic act of September 15 asked that municipalities should not adhere to the fiscal (tax) ule, but not to the “unsustainable privileges” either.

The long-time mayor of San Jose, Johnny Araya, participating in the San Jose Independence Day ceremonies on Sunday

“It is not fair that institutions that generate our own resources (tax revenue) have to adhere to the fiscal rule,” said Araya.

- Advertisement -

In the same tone, Araya did not agree to the “privileges” extended by the Caja Costarricense de Seguro Social (CCSS) to its 57,000 employees in a deal signed in February and then last month that put an end to the public health worker’s strike. The agreement has since been repealed after the Comptroller’s office ordered the CCSS to cancel the agreement that was in effect contratry to the Fiscal Reform that went into effect last December.

The mayor was emphatic in saying that it is necessary to cut the expense caused to the State by the “unsustainable items” that benefit a few and called on the Executive Branch and the different social sectors of the country to seek a solution to the conflict that has gripped Costa Rica for some months.

Araya spoke the words in front of President Carlos Alvarado, Carlos Ricardo Benavides, president of the Legislative Assembly and Fernando Cruz, Chief Justice of the Supreme Court, and other government officials, during the Sunday morning independence day ceremonies in the Plaza de la Democracia, in the heart of the city of San Jose.

- Advertisement -

Despite the claim by the municipalities that since their produce part of their own income through taxation, they should be exempt from the Tax Reform law.

This despite the warning by the Comptroller’s Office that this is not entirely correct as they also receive revenue (by way of transfers) from the Central Government.

The fiscal rule is a mechanism that contains tax reform and that puts a ceiling on the growth of spending in the State, mainly in salaries, service payments and transfers.

President Alvarado has asked the entire public sector to apply this rule to contain public spending that helps shore up public finances.

The rich pay as rich and the poor pay as poor

In the same speech, Araya also said that a tax reform should be progressive and must be guided by the principle that the rich pay more tax than the poor. Otherwise, he says, it will be incomplete.

“As Alfredo González Flores (president of Costa Rica between 1914 and 1917) said more than a hundred years ago, the rich pay as rich and the poor pay as poor.

- Advertisement -

“If we achieve that, it is also necessary to punish evasion and control the circumvention that are factors that contribute to the increase of poverty and inequality,” demanded the mayor, who aspires re-election in the 2020 municipal race.

However, Araya believes that the public sector must contain “unbridled” spending in “unsustainable” items that only benefit a sector of society, without specifying which groups her referred to.

- Advertisement -

FACT CHECK:
We strive for accuracy in its reports. But if you see something that doesn’t look right, send us an email. The Q reviews and updates its content regularly to ensure it’s accuracy.

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

A perfect storm: What’s behind the Colombia protests?

QCOLOMBIA – Colombia has been roiled by nationwide, anti-government protests for...

Colombia: Riots leave at least 19 dead and more 800 injured in five days

QCOLOMBIA – The violence registered in different cities across Colombia during...

MOST READ

Estadio Nacional

QCOSTARICA - The multipurpose national stadium, the first modern sport and event arena to be built in Central America, located La Sabana. The stadium was...

The US improves travel alerts for Central America; Not Costa Rica and Nicaragua

QCOSTARICA - The United States has eased travel advisories for most Central American countries, with the exception of Costa Rica and Nicaragua, according to...

Quepos flooded by heavy rains (Photos)

QCOSTARICA - The residents of the Central Pacific endured heavy rains Monday afternoon, June 7, hardest hit the town of Quepos, where the streets...

Bribed with cars, sexual favors and money in exchange for road works contracts

QCOSTARICA - The OIJ uncovered a big pothole on Monday when it was announced that public officials had allied with construction companies that, apparently,...

Today’s Vehicle Restriction: June 13, “EVENS”

Today, Sunday, June 13, only EVENS can circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save for those under the...

Daniel Ortega undertook a hunt for presidential candidates and opponents

TODAY NICARAGUA – In an unprecedented persecution, the Daniel Ortega regime detained four presidential candidates in one week, a move that is part of...

Today’s Vehicle Restriction: June 11, “EVENS”

Today, Friday, June 11, only EVENS can circulate. The measure is countrywide and applied between 5:00 am and 9:00 pm, save for those under the...

Today’s Covid News: Contagion rate in Costa Rica remains unchanged in the last week

QCOSTARICA - The contagion rate of covid-19 in Costa Rica in the last week did not change, a fact that is seen for the...

Simple to request certification of vaccines against covid-19 applied in Costa Rica and abroad

QCOSTARICA - The Ministry of Health issued a new guideline on Thursday that establishes the requirements to request the vaccination certificate against covid-19 in...

WANT TO STAY UP TO DATE WITH THE LATEST!

Get our daily newsletter with the latest posts directly in your mailbox. Click on the subscribe and fill out the form. It's that simple!

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.