Costa Rican Deputies Support Interim Tax Plan

by Mike Godfrey, Tax-News.com, Washington

16 December 2002

The Costa Rican Asemblea Nacional has approved an interim tax plan designed to reduce the country's fast-growing budget deficit, according to reports in the local media.

AM Costa Rica reported on Friday that the package, which includes new 'sin taxes' and luxury taxes, and provisions to tax casinos, online betting operators, and banks which maintain an offshore presence, was approved by a margin of 45 to 5, with only minority party, the Movimento Libertaria opposed to the plan.

According to the local news service, the interim tax package was amended slightly in order to include another small, non-deductible levy on corporations, and the slot machine tax was significantly reduced from $300 per machine per month to just $20.

When the plan went before the full assembly earlier this month, Rolando Lacle, President of the national assembly urged politicians to act quickly, warning that if it was not approved, the government would be forced to cut road programs, hold the line on salaries, and increase import duties in order to reduce the deficit.

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