American Expatriate Costa Rica

Legislative committee approves project for fiscal reform

The project for a fiscal reform promoted by the Government was approved this Tuesday by the majority of legislators (four out of seven) of the special commission of the Congress that processed it.

Those who endorsed the text were the legislators Johnny Leiva, from the Social Christian Unity Party (PUSC), Maureen Fallas and Juan Luis Jiménez Succar, from the National Liberation Party (PLN), as well as Marco Vinicio Redondo, from the Citizen Action Party (PAC). The ones who voted against were Otto Guevara, from the Libertarian Movement (ML), Edgardo Araya, from Frente Amplio (FA), and Alexandra Loría, from National Restoration (RN).

The vote took place after the commission rejected 1,164 motions to the text due to expiration of the deadline to discuss and vote.

The project, called the Law on Strengthening Public Finances, proposes the creation of the Value Added Tax (VAT) with a rate of 13%, but with an expanded base of goods and services subject to the collection of the tax.

Some of the services that would pay VAT are gyms, lawyers, car rentals, streaming services that are consumed in the country, such as Netflix, HBO Go, as well as concerts, and football matches. Private education and health services would also be taxed, but at a lower rate.

The initiative also includes reforms to the income tax, as a tribute to high salaries, and reforms to order the payment of salary bonuses in the public sector.

The project, which is processed through a fast track, will now be sent to the Legislative Plenary for discussion and voting.

crhoy.com