American Expatriate Costa Rica

Hotel owners call unconstitutional exit tax hike

Hotel businesses are opposed to a presidential decree that increases the exit tax by $2. The tax would go into effect in two months and is intended to fund the Animal Health National Service (SENASA).

Gustavo Araya, president of the hotels association said the decree is unconstitutional, since the executive branch can not create new taxes without authorization of the Legislative Assembly. On Friday, this business sector expressed their discontent in a letter addressed to the President.

Legal experts say that tax creation and reform can only be done through a legislative process. However, an existing act can include a provision that allows the executive to modify the tax rates by decree.

Source: La Nación.