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Wednesday, September 27, 2023

New Costa Rica Tax Reform Proposal Rejected by Legislators

The President of Costa Rica, Rodrigo Chaves, and Finance Minister Nogi Acosta explained their tax reform proposal through a television broadcast.

Chaves began by recalling his campaign promise, in which he pledged to combat tax evasion, fight income inequality, and not raise taxes. He also reaffirmed his commitment to stick by his words.

Additionally, Chaves continued by telling Costa Ricans that, once again, a campaign is being orchestrated by national media pushing the narrative, saying that the government is trying to increase taxes.

“The voices of the haters, liars, and servile of the rich in this country have already come out. They have come out to defend their interests by lying. They want to make you believe that we are imposing new taxes. But you know that we have always been categorical in that the solution is not to create new taxes,” the Head of State stressed.

According to Rodrigo Chaves, they want to reform the tax system so it can work appropriately.

Nogi Acosta strongly criticized previous fiscal reforms and pointed out that economic crises and financial problems will no longer burden the country.

“The governments before us only thought about raising taxes,” he added.

Rodrigo Chaves and Nogi Acosta were clear about their fight against tax evasion and paying Costa Rica’s debt. They praised their fiscal discipline so that Costa Rica could be a more prosperous country.

Progressive Liberal Party deputy Diego Vargas commented on the bill presented by the government.

“The Government presented five bills where it intends to raise or charge more taxes, and I tell you: do not count on me. Costa Ricans can no longer bear more taxes. The cost of living is increasing, salaries are decreasing, and we feel more and more suffocated every day. We must improve people’s lifestyle, not sink them,” he posted on social media.

On the other hand, Priscila Vindas Frente Amplio’s representative stated that “despite the discursive twists and turns,” it’s clear that “new taxes are being created.” In addition, she believes they “seek to curb the small productive sectors.”

Meanwhile, the Partido Unidad Social Cristiana strongly voiced their position against any new taxes.

“We invite the Government to establish a sincere dialogue with all political forces and design a plan that truly favors the productive sectors and Costa Rican families and allows addressing the fiscal situation without further burdening citizens,” said Alejandro Pacheco, head of the PUSC.

The government will have to start negotiations with the deputies and listen to different proposals, as it seems that a plan to raise taxes will not be approved.

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