Thursday 17 June 2021

Why would it be negative to establish a tax on bank transactions?

(QCOSTARICA) Passing new taxes proposed by the government of Carlos Alvarado on bank transactions would make goods and services more expensive and companies’ payroll would increase.

“A new tax in the current situation is undoubtedly a blow for Costa Ricans and a setback in the banking process that financial entities have promoted for years,” said Mario Gómez Legal Advisor of the Asociación Bancaria Costarricense (ABC) – Costa Rican Banking Association.

- Advertisement -

According to the ABC, there would be negative consequences of the tax:

  • Disincentives saving and motivates people to use cash, that is, favors unbanking
  • Over time, people and companies learn to avoid paying the tax
  • The use of more cash puts citizens at risk from criminals
  • Generates capital flight to accounts abroad (offshore)
  • It leads to growth in the informal sector, which ends up also damaging the Caja
  • Depending on how the tax is raised, it could have a cascading impact on production costs and prices to the final consumer.
  • The World Bank has established in various studies that the use of credit or debit cards not only reduces the cost associated with the use of cash by almost 50%, but they also become mechanisms that facilitate financial inclusion, therefore a project of this nature undoubtedly goes against these recommendations

Economists, businessmen and legislators warn the Government of the dangers of including aspects such as world income or taxes on banking transactions in the negotiations with the International Monetary Fund (IMF).

- Advertisement -

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.

Q Costa Rica
Reports by QCR staff

Related Articles

Distrust of sectors complicate signing an agreement with the IMF this year

QCOSTARICA - Reaching a structural adjustment agreement with the International Monetary...

Government withdraws IMF proposal and calls for dialogue to balance it

QCOSTARICA - Costa Rica President Carlos Alvarado announced on national television...


Ortega government accuses imprisoned opponents of receiving money from the United States to overthrow him

TODAY NICARAGUA – The Nicaraguan government assures that the imprisoned political opponents detained on charges of “inciting foreign intervention” are “usurpers” financed by the...

Today’s Vehicle Restriction June 17: 7 & 8 CANNOT circulate

Today, Thursday, June 17, vehicles with plates ending 7 & 8 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

Today’s Vehicle Restriction June 14: 1 & 2 CANNOT circulate

Today, Monday, June 14, vehicles with plates ending 1 & 2 CANNOT circulate The measure is countrywide and applied between 5:00 am and 9:00 pm,...

On Monday the vehicle restriction will change, again

QCOSTARICA - In times of pandemic, things change constantly, especially when it is necessary to tighten the belt to reduce the contagion of covid-19. The...

Vaccine Tourism – A Practical Guide

By Amy Gdala, Guest Contributor - The US has a surplus of vaccines, while Costa Rica is struggling to supply sufficient numbers to citizens...

Apple extended the life of its older iPhones

QTECH - Whether due to the global economic crisis caused by the Covid-19 pandemic or due to shortages of electronic components, raw materials, factory...

Central America is back in the news for the wrong reasons, Costa Rica is once again the exception

QCOSTARICA - Osta Rica has been the epicenter of regional diplomacy in recent days. The successive visits of the Secretary of State of the...

Fifth tropical wave precipitation will be heavier in the north of the country

QCOSTARICA - For this Wednesday, the arrival of the fifth tropical wave of the season is expected, thus reinforcing the rainy activity mainly to...

Tourism’s path to recovery

QREPORTS - A new travel trends research paper released today by Tripadvisor®, the world's largest travel guidance platform, reveals that vaccine rollouts globally are...


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.