The initial intention to reduce vehicle property tax by up to 50% in 2022 has been reversed. A replacement text motion has been created. It would have a lower reduction than that approved last year.
In 2021, deputies reduced by half the tax on cars valued less than ₡7 million. The normal tax on a car worth ₡6 million, is ₡170,000. In 2021, this was reduced to ₡85,000. With the latest text, the tax for 2022 would be ₡143,700. The reduction, instead of 50%, will be 21%.
The Comptroller General of the Republic reminded us that reductions in taxes have a negative effect on public revenues that are needed to pay for infrastructure maintenance like road repairs. The adjustment from last year cost the Government
₡60,000 million, or 0.16% of the GDP.
The newest proposal consists of 12 motions. 11 have been presented already. This proposal would reduce the effect on the Government from ₡60,000 million to ₡30,000 million.
