The application of Value Added Tax (VAT) in electricity rates of all distribution companies in the country will range between 3% and 7%. The calculation was made by the Chamber of Distributor Companies (Cedet) that on Tuesday announced in a press conference that the government simply ignored the concerns of the sector to try to keep the electricity rates stable.
Rubén Zamora, legal advisor of Cedet, explained that 13% of VAT is not contemplated in the final rates of the consumer, however, companies, being buyers of electricity to the Costa Rican Institute of Electricity (ICE), should make that payment. This generates a cascading effect on what consumers must pay.
Erick Rodríguez, vice president of Cedet, explained that a financial imbalance has been generated in regulated companies and that will inevitably imply that Aresep should analyze the finances of the entities.
This increase of between 3% and 7% would be just to cover the financial gap generated during the second half of this year. Some companies have already submitted tariff applications as of 2020 that include the VAT indicator, which would imply further increasing consumer rates.