A new bill aims to establish a specific tax on ultra-processed products such as packaged fries, ice cream, chocolates and candies, breads, rolls, cookies, cakes, sweetened breakfast cereals, energy bars, margarines, milk-based sugary drinks including yogurt, fruit drinks and nectars, chocolate drinks and the like, in order to discourage the consumption of these foods and, in turn, strengthen the Invalidity, Old Age and Death (IVM) regime of the Costa Rican Social Security Fund (CCSS).
The project mentions the nutrition survey carried out in 2009, which warned that obesity was already a public health problem in Costa Rica for both youth and adults, and this situation has worsened.
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In addition, authorities argue that a study by the Pan American Health Organization (PAHO) and the World Health Organization (WHO) in 2015 found that in Latin America, body weight gain is directly related to food consumption of ultra-processed food.
Ultra-processed foods are industrial formulations made from food derived substances or synthesized from other organic sources, most of which contain few or no whole foods. They come ready to be consumed or to heat and, therefore, require little or no preparation.
The proposal seeks to create a sales tax for factories, on the date of delivery of the product and in the import process, at the moment of acceptance of the customs declaration. In the national production, the manufacturer or packer of said products will be the taxpayer, and when imported, the natural or legal person who introduces the products will have to pay said tax. It is proposed a tariff of 1.5 colones per 5 grams, proportional to the total amount of grams of the product.
In order to contribute to the strengthening of the IVM we propose that the proceeds from the creation of this tax be allocated to the pension system, taking into account that the total collection, according to our estimates, will have a floor of 30 billion colones and we know this is not enough to solve the current problem, but it contributes significantly,”
says the project.
In Latin America, the only country that has chosen to tax food for its negative effects on health has been Mexico.