Costa Rica News -The Government has decided to propose an IVA of 13%. The Vice Minister of the Presidency clarifies that the 15% tax is not officially ruled out; it all depends on the parties.
The proposal is to transform the sales tax into a value added tax (VAT) and maintain the current rate of 13% instead of the previously promoted 15%. This was consigned in the draft of the Bill of Strengthening of Public Finances.
The creation of a VAT means taxing services that are not taxed today, such as computer services, rentals, TV streaming services, gyms and lawyers’ services. This option may appease the financial crisis but may require some negotiation first.
The Executive Power will put the issue to discussion among the deputies involved. 29 votes are needed to approve the creation of the tax in Congress. The draft of the bill will be discussed this week.
