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

Will Costa Rica’s New Megaprison Make Life Safer?

Leave it to the Frente Amplio (Broad Front) political party to spoil the fiesta. Our sparkling new 34 million dollar megaprison was all ready...

Thousands of European Investors Fear Losses as Costa Rica Teak Scheme Collapses

More than 6,000 Europeans paid about 200 million Swiss francs for teak trees on 60 Costa Rica plantations. The seller is bankrupt and Swiss prosecutors are investigating.

Atenas launches Gallery Nights: a different artist every month, with the Central Valley as a backdrop

The series opens in November with Terry Eldridge, followed by John Taylor in December and Joanna Woskowicz in January Starting in November, Atenas will have...

Costa Rica’s National Theater Celebrates 129 Years With Free Tours and Concerts Today

Costa Rica's National Theater is celebrating its 129th anniversary today, with free guided tours, live music and activities in downtown San José, giving everyone...

Costa Rica Audit Finds Long Delays for Stomach Cancer Diagnosis and Treatment

Patients with stomach cancer in Costa Rica can face months of waiting for tests, biopsy results and treatment, according to a CCSS audit that...

Costa Rica President to Tour CECOT Days After Opening a 5,100-Inmate Prison

President Fernández will travel to El Salvador on Friday to tour the Terrorism Confinement Center (CECOT), the mega-prison at the center of President Nayib...

Matthew McConaughey’s Tequila Brand Debuts in Costa Rica Through Luxury Hotel Partnership

Pantalones Organic Tequila, owned by Matthew and Camila McConaughey, makes its Costa Rica debut at Nekajui with four cocktails inspired by Texas, Brazil and Guanacaste cowboy culture.

Costa Rica’s Public Healthcare System Considers Offering Ozempic and Other Weight-Loss Drugs

Costa Rica's public healthcare system is evaluating medications such as Ozempic and Wegovy to treat diabetes and obesity. The CCSS has not announced when the drugs might become available or which patients would qualify.

Costa Rica Owls: Camera Traps Reveal Their Hidden Live

Costa Rica is home to an array of owl species. They come in a variety of patterns, shapes, and sizes, but they have a...
Loading…

Latest News from Costa Rica

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