No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeNewsCosta RicaCosta Rica proposes new bill to regulate and tax Uber

Costa Rica proposes new bill to regulate and tax Uber

The Economic Affairs Committee of the Legislative Assembly on Wednesday introduced a new bill that seeks to regulate ride-sharing platforms such as Uber.

The proposal “seeks to balance conditions between transport service providers and offer benefits for taxi drivers,” according to Robert Thompson, president of the committee. 

Among the main points of the bill is a provision that applies the 13% value-added tax to ride-sharing platform users. Taxis would not be taxed because they are a public service.

Uber drivers would also be obligated to pay an annual right of operation fee, enroll as contributing taxpayers before the Finance Ministry, contribute to social security as independent workers, and have full coverage insurance.

Ride-hailing platforms such as Uber would owe a registration fee of 20 base salaries (approximately $15,500), which would be renewed every four years with an additional cost of 10 base salaries.

Meanwhile, taxi drivers with newer vehicles would be subject to fewer inspections, and taxi fares would be subject to negotiation with riders — with the price on the meter serving as the maximum fare.

This text seeks to provide a solution and a comprehensive approach to the socio-economic problems faced by taxi drivers, as well as provide security to both drivers and users of technological platforms,” a statement from Thompson reads. 

The Economic Affairs Committee hopes to fast-track the bill (21.587) into law, a process which involves introducing it to the full Legislative Assembly for debates.

The proposal is yet another step toward regulating Uber, which has operated with tenuous legality in Costa Rica since August 2015.

Taxi drivers have frequently protested against Uber and similar platforms, saying they undercut businesses through unregulated operations. The government of President Carlos Alvarado introduced in January a bill that would have taxed Uber, but it was rejected.

“We believe that there should be a regularization that is prompt, that creates balance in the market, that can generate the conditions of compensation,” President Alvarado said in September. “We all agree that we want a bill that improves conditions for the benefit of families.”

 

Trending Now

Trump Warns Venezuela Airspace is Completely Closed as Tensions Escalate

United States President Donald Trump warned this Saturday that the airspace over and around Venezuela should be considered completely closed, in the context of...

El Niño Causes Massive Coral Die-Off at Costa Rica’s Isla del Caño

Scientists report that the 2023-2024 El Niño event delivered a severe blow to coral reefs around Isla del Caño, one of Costa Rica's key...

Latin America Poverty Falls to Record Low in 2024 but Inequality Remains Stark

Poverty in Latin America fell by 2.2 percentage points in 2024 compared to the previous year and now affects 25.5% of the population, the...

No Army in Costa Rica: How a 1948 Decision Changed Central America

On December 1, 1948, José Figueres Ferrer, President of the Founding Junta of the Second Republic, officially abolished the Costa Rican army by symbolically...

Miami eyes first MLS final with Messi in unstoppable form

Inter Miami is within reach of its first MLS final in Saturday’s clash against New York City, a game it enters as favorite thanks...

Costa Rican Junior Tennis Gains Momentum with Korneva’s ITF Victory

Alexandra Korneva lifted the trophy at the ITF J30 San José this past weekend, capping a strong performance that highlights how local tournaments here...
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