Under study in the Legislature are 26 bills involving new taxes, increases of some existing ones and redistribution of others.
An analysis piece by Nacion.com notes that the Legislative Assembly is currently considering 26 bills introduced during the current administration which in some way involve the issue of taxes."...Of the total projects, 50% are attempts to raise them or create a new type of tax or fees. "
The Constitutional Court has rejected the appeal made by Holcim which protested against the 5% tax on the sale of cement produced in some provinces.
The Swiss company Holcim Capital won an appeal against the Law on 5% Tax on the sale of the cement produced in three provinces: Cartago, Guanacaste and San Jose, considering it "discriminatory" and harmful to their competitiveness. The company argued that the measure favored cement importers or producers in other regions of the country. However, Crhoy.com reports that through judgment 003897-16, the Constitutional Court rejected the appeal.
Traders, industrialists and entrepreneurs in the agro sector disagree with the position of the main private sector union over the negotiation of new taxes.
Three business unions have ratified their opposition to new taxes in Costa Rica and have made known their total lack of empathy with the way the Uccaep, an organization that unites most of the unions in the private sector, has dealt with the Solis administration over tax issues, the negotiation of a shareholder register proposed by the government and other aspects related to the fiscal problems affecting the country.
The private sector is protesting against the fact that companies are making losses because of lack of clarity in dissemination of government information and in the management of collection of the new security tax.
From a statement issued by the Chamber of Commerce and Industry of El Salvador:
A proposal to create a temporary tax to fund the fight against corruption has sparked the reaction of entrepreneurs, who are demanding that "the house be cleaned first."
An article on Prensalibre.com reported that the president of the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations (CACIF), Jorge Briz said: "Before another tax, you must first clean house. Every year the Government and the State have more income tax issues, but there are fewer results. "
A proposal has been made to create a special and temporary tax on assets above a certain amount in order to finance the operations of the Public Prosecutor against impunity and corruption in the state.
Ivan Velasquez, head of the International Commission against Impunity (CICIG), believes it is necessary to move on from "... discussing corruption to taking action", and therefore is proposing, together with the Public Ministry, the creation of a new tax to strengthen the institution's budget in the fight against impunity and corruption.
A postponement has been made until January 1, 2016 of the entry into force of the measure which requires companies with annual purchases of goods and services worth over $10 million to retain 50% of the tax on transfer of movable property and services.
After the business sector asked for more time to implement the necessary changes to start withholding the tax, the Ministry of Finance decided to postpone entry into force of the measure until January 1.
Operators are opposed to the proposal to tax phone bills and purchases of technological equipment, while the government has shown itself unwilling to cooperate by reducing tariffs.
While the government insists that telecommunications companies must lower telephone rates in order to minimize the impact of a future tax of 10% for public security, telecoms companies have defended themselves arguing that "... the process of approval of charges and maximum fees does not depend on the willingness of companies, but the process defined in the regulations established for that purpose. "
The Constitutional Court has rejected the constitutional challenge presented by the business sector and left in place the collection of 1.5% income tax.
The Supreme Court has confirmed the income tax of 1.5%, which applies to companies reporting net sales of over $456 000, leaving exempt from this charge those reporting lesser incomes and those with less than two years of being established.
The new draft law on tax fraud prepared by the opposition and which must be reviewed by the Ministry of Finance excludes the concept of collection and seizure by administrative authorities.
After having negotiated for the opposition bloc in Congress to amend the bill originally submitted by the Ministry of Finance, the new bill is ready and among the changes is the elimination of the incorporation of the concept of fines and embargos imposed administratively. It maintains the collection and seizure of tax debts through the courts.
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