• Costa Rica Real Estate

Government interfering in Uber taxi services now?

August 12, 2017

President Luis Guillermo Solís seeks to enforce the Public Transport Law to prevent illegal taxi services by Uber.

The Costa Rican government published 5 new articles of the law

– The Ministry of Public Works and Transport (MOPT) must comply with its obligations to monitor and punish, in accordance with Law No. 7331, Law on Transit by Land Roads, those who provide paid transportation service of persons without the corresponding authorizations and in any other way contrary to the law.

– The General Directorate of Taxation (Ministerio de Hacienda) must carry out the actions that correspond by law to ensure that any other company that uses digital platforms to provide an illegal service of remunerated transport of people, comply with the applicable tax provisions.

– The Costa Rican Social Security (CCSS) is urged to investigate, within its constitutional and legal competencies, whether any company that uses digital platforms to provide an illegal service of remunerated transportation of persons is up to date with its obligations with the social Security.

– The Ministry of Economy, Industry and Commerce, in accordance with Law No. 7472, Law on the Promotion of Competition and Effective Consumer Defense, has to take legal action in relation to promotions and offers on illegal transportation services who promote different companies within the territory.

– All institutions of the central and decentralized administration are instructed to carry out the relevant actions within the framework of their competencies in order to comply with the applicable legal framework in relation to the remunerated transport of persons.

With this, the Government seeks to stop Uber in relation to illegal transportation, but complies with the payment of taxes and social obligations.  Minister of Communications, Mauricio Herrera said “It is important to emphasize that if an activity that is outside the law and complies with the provisions of the CCSS and with the payment of taxes and labor obligations, does not make it legal,” said Herrera.

Time will tell if these measurements will stop Uber’s operation in Costa Rica or not.

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