Economy faces downturn due to lack of tax reform
The Central Bank of Costa Rica (BCCR) warned Monday that the economy will face a growing public deficit and stunted growth if Congress doesn’t pass tax reform.
According to the BCCR, the deficit risks growing to 7.2 percent this year, up from 6.2 percent in 2017.
Economic growth could also see a decline to 3.2 percent from the projected 3.6 percent.
The BCCR said evidence suggests that the longer it takes to pass tax reform, the more of an adjustment will need to be made. That will lead to a higher cost to society. The country’s debt also risks going from 54 percent of GDP to 58.4 percent by 2019 if there’s no tax reform.
The last four administrations have unsuccessfully tried to pass tax reform packages that included new taxes and plans to reign in public spending.
Now Carlos Alvarado’s administration is taking its shot. Congress is currently debating the tax reform proposal put forward by his government.
You may be interested
Climate Change Spurring Frog Extinctions: ConservationistsAFP - January 16, 2021
Three Central American frog species have gone extinct and many others may soon follow as their populations are ravaged by…
Rare White Tiger Born at Nicaragua ZooAFP - January 16, 2021
A rare white tiger, named "Nieve" (snow in Spanish) was born at the Nicaragua zoo, and is being raised by…
Costa Rica has administered 25,000 vaccine shots, Caja saysThe Tico Times - January 15, 2021
Costa Rica’s public-health system has administered nearly 25,000 coronavirus vaccine shots, the Social Security System (Caja) reported. The figure —…