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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.

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