A report published by the Central American Institute for Fiscal Studies (Icefi) showed that for every ¢100 collected in Costa Rica for sales tax, ¢28 colones are evaded. According to Jonathan Menkos Zeissig, executive director of the Central American Institute for Fiscal Studies (Icefi), all countries in the region, with the exception of Costa Rica, have reformed its laws for more effective tax administration.
According to Francisco Villalobos, former director of Taxation evasion can only be reduced by passing a system of value added taxes.
A VAT is effective because it requires taxes to be paid every time goods or services are added to a product, and eliminates exemptions that are frequently abused.