The draft fiscal plan that is processed in the Legislative Assembly and that until this weekend exonerated the products of the basic basket from paying the value added tax (VAT) has made entrepreneurs of the food sector very unhappy, as they believe the rush in the way the initiative is being processed is causing a serious impact on consumers and companies.
Representatives of the Costa Rican Chamber of the Food Industry (CACIA) sent a letter to the legislators on August 22nd, questioning the fact that they had carried out a hasty process that generates serious doubts about the final impacts it will have.
For example, regarding VAT and the basic basket, they believe the motion approved to exclude it from payment did not include all the corrections that the text requires so that the prices of the products won’t be affected.
This situation will produce several effects such as the transfer of the cost to the final consumer and the loss of competitiveness of the national product compared to the imported product, since the latter does not carry this distortion generated by the internal tax scheme,”
said Mario Montero, Executive Vice President of CACIA.
The food business also pointed out that legislators did not think about elements such as the possibility of applying tax credits or authorized purchases in the supply of raw materials, machinery, equipment, services, packaging, among many other purchases of goods and services required for the production of basic basket goods.
Another of CACIA’s questions is related to the income tax, where the payment scales for salaried employees are being extended. According to the Chamber, this discourages consumption.
This Thursday the government reached an agreement with National Liberation to try to reverse the measure and restore the collection, which should be discussed this week.