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

Costa Rica President Chaves Retains Immunity in Electoral Probe Vote

President Rodrigo Chaves sidestepped a potential removal from office for the second time this year when lawmakers turned down a bid to strip his...

Costa Rica’s La Vuelta returns with international teams and a descent into San Isidro

Every December Costa Rica celebrates its strong bicycling roots with La Vuelta, a 10-stage cycling race that challenges riders with its mix of hill...

El Salvador Court Sentences Activists to Three Years but Grants Conditional Release

In San Salvador, a court sentenced environmental lawyer Alejandro Henríquez and community leader José Ángel Pérez to three years in prison on charges of...

How to Travel with Pets in Costa Rica Without Issues

Travelers who plan to bring their dogs or cats into or out of the country often face strict rules set by the National Animal...

Guatemala Dismantles Los Moisés Migrant Smuggling Network Targeting US Border

Guatemalan officials arrested 14 people tied to a migrant smuggling operation aimed at the United States, striking a blow to illegal crossings in Central...

Costa Rica Approves U.S. Coast Guard Boats for 2026 Anti-Drug Operations

Lawmakers in Costa Rica's Legislative Assembly have given the green light for up to 195 U.S. Coast Guard vessels to access the country's ports...
Costa Rica Coffee Maker Chorreador
Costa Rica Coffee Maker Chorreador
Costa Rica Travel Insurance
Costa Rica Travel

Latest News from Costa Rica