American Expatriate Costa Rica

Municipalities question future application of VAT

The National Union of Local Governments questioned the creation and future application of the value added tax (VAT), with 13%, since they believe it would impact the amount of resources in the purchases made by the Municipalities to meet the needs of the different communities.

The municipalities already make a series of transfers for the development of the canton and even for the central government, how is it that they intend to further reduce the budget they currently have?”

asked the executive director of the UNGL, Karen Porras.

They claim that the bill for the Strengthening of Public Finances intends for municipalities to 13% of the Value Added Tax (VAT). But, according to Porras, the legislative project, file 20.580, is contradicted by the Municipal Code that grants exemption of all kinds of taxes, contributions, fees, and rights to the Municipalities.

The Ministry of Finance, on the other hand, insists on the need to approve this project to expand the collection base.

crhoy.com