No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeNewsCosta RicaCosta Rica upholds tax breaks for electric cars, solar panels

Costa Rica upholds tax breaks for electric cars, solar panels

Costa Rica’s Attorney General has ruled solar panels, efficient bulbs and electric vehicles will maintain their tax exemptions.

“We celebrate that this exemption is maintained. The transport sector is key in our National Decarbonization Plan and the incentives of the electric transport law are key in the objectives toward electric mobility,” said the Vice Minister of Energy, Rolando Castro.

These products are exempt from 13% sales tax by law 7447, in the case of bulbs and panels, and law 9518, in the case of electric cars.

With the July 1 change of sales tax for a value-added tax (VAT), the Ministry of Finance had consulted the Attorney General to determine what would happen to these exemptions.

The Attorney General, however, interpreted that the new VAT law does not repeal the previous tax law, but rather modifies it. That is why, according to the resolution, “it can not be understood that exemptions from the so-called sales tax granted by other laws have been tacitly repealed.”

“It should also be clarified that the exemptions from sales tax that were granted for terms determined under Law 6826 remain in effect,” the Attorney General’s Office said in its ruling.

The incentives for electric cars came into force less than two years ago, in February 2018. After a year of exemptions, imports grew almost sixfold, according to data from the Treasury.

In 2018 alone, more electric vehicles entered the country than had entered over the previous seven years combined.

According to the President of the Environment Commission of the Legislative Assembly, Paola Vega, the resolution also gives the assembly the task to make an “authentic interpretation” to leave the picture even clearer.

“We will proceed as soon as we return from vacation to make that authentic interpretation and everything will remain the same,” the deputy said.

Semanario Universidad Logo

This story was originally published by Semanario Universidad on July 5, 2019. It was translated and republished with permission by The Tico Times. Read the original report at Semanario Universidad here.

Trending Now

Celebrate 128 Years of Costa Rica’s National Theater

The National Theater turns 128 this month, and starting Sunday, October 12, it opens its doors for a week of events that mix music,...

Guatemala Joins Costa Rica and Ecuador in Building Anti-Gang Prisons

The Guatemalan government has put forward a new bill aimed at hitting gangs harder, with steeper sentences and a dedicated high-security prison, as the...

Guatemala Accepts First Honduran Deportees from US

Guatemala has started accepting deportees from other countries as part of its deal with the United States, with the first group of Hondurans arriving...

Costa Rica Landslide Tragedy as Family Buried Alive

Heavy rains triggered a deadly landslide in Piedades Sur, San Ramón, Alajuela, late Saturday night, burying a family home and killing two adults and...

Costa Rica TSE Seeks to Lift President Chaves Immunity

Costa Rica's electoral tribunal has stepped up pressure on President Rodrigo Chaves by asking lawmakers to strip his immunity over claims of political interference...

Juanes Lands in Costa Rica to Shoot Videos for New Tracks

Colombian singer Juanes has arrived in Costa Rica, turning our country's landscapes into backdrops for his latest music videos. The artist, known for hits...
spot_img
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Rocking Chait
Costa Rica Travel

Latest News from Costa Rica