One of the major proposed changes would swap the current sales tax for a value added tax that would encompass services as well as goods. Tourism activities would be exempt for the first year after the law goes into effect, then charged 5 percent in the second year, 10 percent in the third and 15 percent starting the fourth year.
Representatives of the Costa Rican Restaurants Chamber warned this week that restaurant owners could face liquidity problems due to a 2 percent charge that banks will assess on all dining payments made with credit and debit cards.
The bill sent by Finance Minister Helio Fallas includes nine major reforms that would give officials more tools to monitor and tax financial transactions, including a requirement that all businesses accept credit or debit cards as payment.
Ombudswoman Ofelia Taitelbaum on Monday morning submitted a letter of resignation to the Legislative Assembly just days after lawmakers and Judicial Investigation Police announced they would open an investigation into allegations that she had committed tax fraud.
Business confidence in Costa Rica dropped by 10 percent compared to the same period last year, a survey by the Union of Private-Sector Chambers and Associations said. Confidence dropped in every sector surveyed.
Costa Rica's government will "definitely" lower the forecast for this year's fiscal deficit as the government steps up efforts to fight tax evasion in the Central American country, Vice President Helio Fallas said.
