In this scenario of economic crisis, falling tax revenues and the need to finance recovery programs, in Guatemala and Costa Rica it is already proposed to increase current taxes and create new ones.
Guatemalan authorities are already beginning to discuss the fiscal policy they will apply in 2021, when the economy will have to face the effects of the economic crisis generated by the covid-19 outbreak.
In order to access the $1.75 billion credit requested from the IMF, the Costa Rican government proposes to tax financial transactions, increase the tax on the profits of companies and individuals, and increase the tax on real estate.
On the afternoon of September 17, and in the context of a severe economic crisis that had been going on since before the beginning of the pandemic, the Alvarado administration presented the plan with which it intends to mitigate the fiscal impact of the Covid-19 crisis, a proposal to negotiate an agreement with the International Monetary Fund (IMF) to obtain a credit of $1.75 billion.
In Costa Rica, the Alvarado administration would be considering the creation of a tax on each transaction that a person or company makes through a financial entity, a tax that will discourage savings and motivate people to use cash.
In order to discuss a medium and long term credit with the International Monetary Fund, the Costa Rican authorities would be planning to design and create a new tax, which consists of each person paying a tax of ¢3 for every ¢1.000 in the transactions they make through a bank, finance company, mutual fund, stock exchange or any other financial entity.
The Legislative Assembly approved in second debate a bill that aims to tax in the country the sale and self-consumption of imported or locally produced cement.
The initiative, which was approved in the first debate in the Assembly in mid-February and is still pending approval by the Executive Branch, establishes that the tax will be on imported cement produced nationally, in bags or in bulk, for sale or self-consumption, of any kind, whose destination is the consumption and marketing of the product nationally.
The Assembly approved in first debate a bill that seeks to tax the sale and self-consumption of cement that is imported or locally produced.
The initiative establishes that the tax will be on cement imported and produced nationally, in bags or in bulk, for sale or self-consumption, of any kind, whose destination is the consumption and marketing of the product at the national level, reported the Legislative Assembly.
In Costa Rica, the Ministry of Finance proposes to apply VAT to services such as Netflix, Airbnb, Tinder, Skype, PlayStation Network and advertising on social networks, among others.
According to a resolution of the Ministry of Finance that should be in consultation in the coming days, credit card issuers would be required to receive the 13% tax.
The list of digital services objects of the collection of VAT amounts to 190, as some are repeated, as companies use different names at the time of billing their customers.
Businessmen regret the fact that in Costa Rica is constant the creation of new taxes, fees and canons as an easy and quick solution to problems affecting the country, such as the bill that seeks to tax the use of plastic.
Project No. 21159 "Law to solve the contamination of plastic waste", which was presented to the National Assembly by the deputy of the ruling party Paola Vega, contemplates the collection of a tax for the importation or nationalization of plastic inputs, for selling or consuming articles of this material.
In Nicaragua, authorities reported a decision to suspend collection of the additional fee of $0.05 for each kilogram exported or imported by air.
The extra charge came into effect last April 25, but from the beginning the private sector spoke out against it, because it was argued that the tariff that the Nicaraguan government would apply, would put some local companies on the border of closure and cause a decrease of about $50 million annually.
Costa Rica is discussing a bill that proposes to charge an additional 0.5% on all premiums and prohibits deducting from income tax the 4% collected to finance the Fire Brigade.
For the directors of the Association of Private Insurers (AAP), the approval of the National Statistical System Bill, which is being discussed in the country's Congress, would put companies in trouble and cause a contraction in growth.
The new tax reform proposal presented by the Ministry of Finance of Costa Rica includes the creation of a global income system to impose and collect a tax on the profits of companies and individuals.
Taxing all of the profits of natural and legal persons, including those currently paid separately by the identity code income method, is the principal new feature of the new tax reform plan presented by the Ministry of Finance.
The union of tourist businesses is asking the new government to repeal the decree that increases by $1 the amount that each person must pay when entering or leaving the country.
The National Chamber of Tourism argues that in regards to the new charge of $1 "... it is opposed to this guideline, considering it a double charge that would be made by two dependencies of the Ministry of Agriculture and Livestock, for the same service."
A bill that is being discussed in the Legislative Assembly proposes establishing a tax of 5% on the net sale price of imported or locally produced cement.
The bill establishes that "...the tax on cement produced within the national territory or imported, will be of five percent (5%) on the net sale price, both in the case of the national producer at the level of the production plantand for the importer at the level of the dispatch or storage site, excluding the corresponding sales or value-added tax, as well as any other tax".
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.
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.