American Expatriate Costa Rica

Otto Guevara presented 1,200 motions to tax project

On Thursday, legislator Otto Guevara from the Libertarian Movement presented 1,200 motions to the bill that seeks to create new taxes promoted by the Executive Power.

The legislator made the announcement after the special commission that studies the law of strengthening public finances decreed a recess, in order to give time to the congressmen to present amendments to the text. The libertarian presented the motions to officials of the Treasury Affairs Committee of the Legislative Assembly.

Guevara called on different sectors to transmit their concerns and materialize them in motions. He argued that the amendments seek to

defend Costa Ricans from the imminent increase in the cost of living.”

The legislative commission that will study the project will begin the discussion of a substitute text next Monday.

The latest version of the project reiterates the creation of the Value Added Tax (VAT) with a rate of 13%, but extends the base to goods and services that would be subject to collection. The services of gyms, lawyers, car rentals, streaming services consumed in the country, such as Netflix and HBO Go, as well as concerts, football matches and any other activity of this type would be taxed.

Health services and private education would also pay this tax, although with a differentiated rate of 4%.

In addition, the proposal includes the creation of the tax on capital income and the modification of salary incentives such as exclusive dedication, prohibition, annuities and the establishment of a cap on luxury salaries.

The Legislative Plenary set a deadline of three weeks for the special commission to submit its project report, which is processed through a fast track.

crhoy.com