No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeSala IVConstitutional Chamber of the Supreme Court gives tax reform bill the go-ahead

Constitutional Chamber of the Supreme Court gives tax reform bill the go-ahead

The Constitutional Chamber of the Supreme Court declared on Friday that Costa Rica’s tax reform bill is constitutional. The bill will now go back to congress, where enough legislators have announced their support for the bill for it to pass.

The court ruled on three issues put forward by legislators who claimed the bill violated the constitution. One of the main issues put forward was that the bill affected the judiciary’s independence. Costa Rica’s Plenary Court made that ruling in mid-October. This caused doubt about the bill’s chances of passing, since the ruling meant it would need a supermajority of 38 votes to pass a second congressional debate.

This uncertainty surrounding the proposed bill caused Costa Rica’s credit rating to drop and the currency passed 600 colones per U.S. dollar for the first time in history in early November.

Friday’s ruling means that the bill now needs a simple majority to pass. Enough legislators from multiple parties have already declared they will vote to approve the bill.


To find out more about what’s in the tax reform bill, check out our episode of The Tico Times Dispatch on the topic:


The bill is meant to address Costa Rica’s growing public deficit. The country finished 2017 with a deficit of 6.2 percent of GDP in 2017 and is expected to grow to 7.2 percent at the end of this year. The Central Bank of Costa Rica warned that if the deficit isn’t contained and some type of tax reform isn’t passed, the country would face an economic downturn.

The bill also sparked a nationwide strike that started on Sept. 10. The strike was organized by public-sector unions and caused major disruptions throughout the country. There were sparks of violence between protesters and police, and President Carlos Alvarado was violently confronted by protesters.

Albino Vargas, secretary general of the Union of Public and Private employees and one of the main architects of the strike, announced on Twitter that he was still planning to oppose the bill:

 

The bill will now return to congress for a second debate. If it passes, it will go to President Alvarado’s desk for final approval, marking his first major legislative victory since he took office in May.


Thanks for reading The Tico Times. We strive to keep you up to date about everything that’s been happening in Costa Rica. We work hard to keep our reporting independent and groundbreaking, but we need your help. The Tico Times is partly funded by you and every little bit helps. If all our readers chipped in a buck a month we’d be set for years.

Support the Tico Times

Trending Now

Panama and El Salvador Declare Alerts as El Niño Intensifies

Panama and El Salvador declared states of alert on Tuesday over the El Niño climate phenomenon, which is expected to reach record levels and...

Messi Retires from Argentina After 20 years with the National Team

Lionel Messi announced today that he is retiring from the Argentina national team, closing a 20-year international career that ended with a World Cup...

Costa Rica Expansion and Rebuild of the Limón Airport

Costa Rica plans to invest about $40 million to rebuild and expand Limón Airport, with the long-term goal of bringing international flights directly to...

Costa Rica’s Drug Violence Draws Wall Street Journal Alarm as Homicides Fall

The Wall Street Journal published a report Thursday arguing that Costa Rica's rise in drug killings has fractured the political system, setting President Laura...

Costa Rica Supreme Court President Won’t Seek New Term

Costa Rica will soon have a new president of its Supreme Court after Orlando Aguirre announced that he will not seek another four-year term...

Costa Rica Psychedelic Retreat Industry Faces Fresh Scrutiny After Tourist Death

The 2024 death of an American tourist during a psychedelic retreat in Costa Rica has drawn fresh international attention after the New York Times...

Heavy Rains Put Costa Rica’s Banana Farms Under Growing Pressure

Heavy rain, flooded fields and the spread of a damaging plant disease are putting growing pressure on Costa Rica’s banana farms, particularly in the...

Costa Rica Moves Toward Satellite Cell Coverage With Starlink

Costa Rica is getting its first taste of satellite connected cell phones, and both of the biggest telecom operators are behind it. Liberty and...

Tourist Guide Dies in Flash Flood on Pérez Zeledón River

A tourist guide died yesterday when a wall of water came down the Río Barú in Pérez Zeledón and caught a group of roughly...
🌴 The Weekly Pura Vida

Costa Rica, Once a Week

The week's top stories, weather & insider tips — delivered every Sunday. One email, zero clutter.

🔒 Free. No spam. Unsubscribe anytime.

Loading…

Latest News from Costa Rica

Costa Rica Coffee Maker Chorreador
Costa Rica Car Rentals
Costa Rica Travel Insurance
Costa Rica Travel