No menu items!

COSTA RICA'S LEADING ENGLISH LANGUAGE NEWSPAPER

HomeCosta RicaCosta Rica President Defends Tax Proposal for Fairer Society

Costa Rica President Defends Tax Proposal for Fairer Society

President Rodrigo Chaves addressed the tax proposal put forth by the government in a recent press conference, expressing his views on the matter. He criticized political parties, the media, business chambers, and the upper class for spreading lies and misinformation about the proposal.

Chaves clarified that the government’s intention is not to increase the overall tax collection but rather to distribute the tax burden more fairly. He emphasized the goal of creating a more just and equitable society, which he believes will contribute to a stronger and robust democracy in the country’s future.

The president accused certain politicians of being against fighting inequality and working towards a better country, accusing them of defending the interests of the elites. Despite the opposition, Chaves defended specific aspects of the tax proposal, such as increasing the value-added tax (VAT) on airline tickets and medical devices.

Regarding medical equipment for people with disabilities, Chaves argued that the majority of it is already provided by the social security system. He stated that the proposed tax increase would primarily affect the wealthier segments of society.

Addressing the circulation tax, known as the “marchamo,” Chaves admitted that the project includes a tariff increase but assured that it would only impact a small percentage (8%) of car owners.

In terms of airline tickets, Chaves clarified that the proposal would only affect tickets purchased within Costa Rica. He justified this measure by stating that it would primarily impact Costa Ricans who purchase flight tickets, as he emphasized that the poorest citizens do not frequently travel to international destinations.

The president argued that those who travel to Europe or go shopping in Miami are the ones being protected from the tax increase, as they would continue to pay a lower rate for the proportion of the flight corresponding to Costa Rica.

However, despite Chaves’ justifications and defense of specific aspects of the proposal, most representatives outside of the ruling party remain vehemently opposed to the bill. The opposition to the tax increase continues to be a point of contention and debate within the country.

Trending Now

Canada–Guanacaste flights will run year-round, expanding Canada at Liberia Airport

Travelers flying between Canada and Costa Rica’s Pacific coast will have more options outside the traditional high season. Guanacaste Airport in Liberia (LIR) says...

Endangered White-Lipped Peccaries Found Slaughtered Inside Golfo Dulce Forest Reserve

Last Wednesday, the carcasses of ten wild pigs were found slaughtered inside the Golfo Dulce Forest Reserve on the Osa Peninsula in southern Costa...

Crime, Jobs Lead Voter Priorities in Costa Rica’s 2026 Presidential Contest

Laura Fernández maintains a clear advantage in recent polls as Costa Rica's presidential election nears on February 1. Surveys indicate she could win in...

Djokovic opens Australian Open with clinical win as 25th major chase resumes

Novak Djokovic started his latest run at a record 25th Grand Slam title with an efficient, no-drama first-round win on Monday night, rolling past...

U.S. Warns of Military Risks in Mexico and Central America Airspace

The United States Federal Aviation Administration (FAA) issued a series of safety warnings on Friday for airspace over Mexico and Central America. The alerts...

Brazilian Star Beatriz Haddad Maia Falls in Australian Open First Round Upset

Beatriz Haddad Maia, Brazil's leading women's tennis player, saw her Australian Open campaign end abruptly on Sunday with a first-round defeat to Kazakhstan's Yulia...
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica