10232017Headline:
5 Green Reasons Costa Rica Is the Poster Child of the Environment 4 years ago
Have You Tried Guanacaste’s Fastest Growing Sport? 4 years ago
Was Your Costa Rican Bank Account Closed? 4 years ago
Latin America Investment News on Viva Tropical

Constitutional Court Slams Down Costa Rica Tax Reform Laws

Article Summary:

The Supreme Court of Costa Rica declared unconstitutional the legislative process used in President Chinchilla’s tax reforms. The reforms aiming to raise 1.5% of gross domestic product in addition to offset the deficit of around 5%, had already passed the first of two votes in Congress.

Original Article Text From Mis Finanzas en Linavia Google Translate :

Costa Rica: Chinchilla Has Not Ruled Out tax Reform

The president of Costa Rica, Laura Chinchilla, said that define the future of tax reform when she meets the full ruling of the Constitutional Court , a body that canceled the legislative procedure used for project approval.
“We do not think even roll back the reform, but may have to identify alternatives,” said Chinchilla in a press conference after the commemoration of 156 anniversary of the Battle of Rivas against the filibusters led by American William Walker.

“Once we analyze it in its entirety (the judgment) and we value what we would resume the process (legislative) make a decision,” said the president.

The Constitutional Chamber of the Supreme Court said Tuesday in a statement that the legislative process had flaws and therefore is void, although the full judgment has not yet been notified.

The tax reform , which aims to raise 1.5% of gross domestic product (GDP) in addition to offset the deficit of around 5%, had already passed the first of two votes in Congress, which had the support of PAN (PAC), the main opposition force in the country.

The order of the Board, which did not examine the substance of the draft is the answer to a query filed after the first ballot by a group of deputies opposed to reform.

Now the Government is presenting a new project alternative to Congress, restart the entire legislative process with the same text to correct errors or completely rule out the reform .

Chinchilla said that tax reform is the main component to offset the deficit, but said that his government is pushing other initiatives to strengthen the fight against tax evasion and establish stronger sanctions.

He said his government has also taken other measures such as reducing spending, freezing of new positions in the public sector, stopping salary increases to senior officials and strengthened collection instruments.

Speaking at the official events, Chinchilla said his government has had the “courage”, the “courage” and “civic responsibility” to promote reform tax, although a project is “unpopular”.

He added that during this “difficult and misunderstood battle to solve the deficit,” the Government suffered “corporate pressures, unions and media,” thanks to what “greatness” of those who have supported the reform.
The main points of the tax reform is the creation of a value added tax of 14%, replacing the sales tax of 13% and a tax of 2% at private education and health.

It also includes a tax free zones and the collection of global income and global levels

Link to Original Article:

From Mis Finanzas en Lina

Latin America Investment News on Viva Tropical