Sunday 24 October 2021

Solís Says Eliminating Tax on Gasoline “Unworkable”

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COSTA RICA NEWS – “Unworkable” is the word from President Luis Guillermo Solís on the proposal by the Autoridad Reguladora de los Servicios Públicos (Aresep) for the government to cut tax on gasoline, to lower prices at the pumps.

The Regulador General, Dennis Melendez, sent the President a letter on June 23, proposing the government eliminate the tax on fuel prices, which represents 30% of the current price to the consumer, which is some ¢200 colones per litre.

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Solís explained that after a conversation with Finance Minister, Helio Falls, the tax on gasoline generates 12% of the government’s revenue. In 2013 the amount was ¢405 billion colones.

The tax revenue is used to finance road construction and maintenance, in addition to environmental projects and social programs.

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