News
Fiscal Reform in Costa Rica
Source: CentralAmericaData.COM
Tuesday, January 18, 2011
Summary of the legal tax reform aiming at increasing tax revenue by $ 1.000 million, or 2.5% of GDP.
The so-called Solidarity Tax Bill was presented yesterday to the Legislature by the Executive Branch.
The initiative seeks to increase tax revenues by 2.5% of gross domestic product (GDP) which, coupled with the implementation of measures to increase revenue and reduce spending, would balance the public budget.
Income Tax
With the changes proposed by the project, the government raised revenues estimates for this item by 0.5% of GDP.
Value Added Tax
With the implementation of this tax, which would replace the existing Sales Tax, tax revenues would increase by 1.7% of GDP.
The increase by 10 percentage points in vehicle tax, and the rise of 1.5% to 3% tax on property transactions would produce the balance of 0.2%, increasing tax revenues to the equivalent of 2.5 % of GDP.