Members of opposition parties require economic recovery plan to pass tax reform
9 agosto 2018

Opposition parties members requested the Executive branch to draft an economic reactivation policy this week, as they consider the bill that creates new taxes to solve the Costa Rican fiscal crisis insufficient. The Partido de Unidad Social Cristiana (PUSC) expressed that it will support the Tax Reform Bill only if the government proposes new measures to tackle the economic problems, despite the fact that President Carlos Alvarado’s Minister of the Presidency (Rodolfo Piza Rocafort) is a member of PUSC. The Tax Reform Bill is currently being studied by a Special Committee. If the Committee approves the bill, it will have to be discussed twice to become law.


Congressman Pedro Muñoz (PUSC) pointed out that the Value Added Tax (VAT) is collected from the population’s purchases, which would not allow the country to recover from the fiscal crisis due to the lack of cash. This prompted the party’s proposal to seek a strategy to generate the necessary economic growth and also to help tackle tax evasion, including customs. The resolution of these differences will require a negotiation process, which will take place over the coming weeks.


On the other hand,  Congresswoman Yorleny León (Partido de Liberación Nacional – PLN) ratified her party’s commitment to solve the fiscal crisis and agreed with the need to reactivate the economy. However, León states she has confidence in the Minister of Finance Rocío Aguilar when she says that new sources of funding are needed to promote the activities of the different sectors. León also stressed that if she does not keep her word, PLN will retire its support for any other government initiative.


Congressman Welmer Ramos (Partido Acción Ciudadana – PAC) stressed the importance of the tax administration in collecting the taxes needed to resolve this issue. The restructuring of the state apparatus is also necessary according to Ramos, in result of a series of redundant institutions and a tax structure that is less burdensome to the most dynamic areas of the economy. Ramos acknowledged that the government has a comprehensive fiscal plan and the Partido de Integración Nacional is willing to negotiate to achieve economic recovery.

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