Industrialists Opposed to Tax Reform

Food companies in Costa Rica say that eliminating VAT from the basic basket in the tax reform proposal would create an incentive for imported foods, over and above local production.

Friday, August 24, 2018

The Costa Rican Chamber of the Food Industry (Cacia) reacted to the decision of the deputies to exempt VAT of 1% and 2% on the products of the basic basket in the Bill of Strengthening of Public Finances, which is being discussed in the Assembly.

See: "Costa Rica: Tax Reform Moves Forward"

In a letter sent to the deputies, representatives from Cacia said that "... the implications for the producer were not considered when the total exemption of the basic basket was approved, both the rate of 1% for agricultural products and the 2% for the rest ... the affectation will occur mainly because the motion "did not include all of the corrections that the text requires integrally, so that the prices are not affected".

Nacion.com reports that "... Part of the problem is that the inputs for production will be taxed, but not the products, therefore the producer will pay taxes to their suppliers but will not be able to transfer them to consumers. "Elements such as the possibility of applying tax credits or authorized purchases in the purchases of raw materials, inputs, machinery, equipment, services, wrapping or packaging, among many other purchases of goods and services, have not been taken into consideration," explained the vice president of the union, Mario Montero."

Do you need more information about your business sector?

Request more information:








this site is protected by reCAPTCHA and Google's privacy policy and terms of service.
Need assistance? Contact us
(506) 4001-6423


More on this topic

Crisis in Nicaragua Worries the Food Industry

June 2018

Costa Rican entrepreneurs are concerned about the impact of the crisis in the neighboring country on food exports, which between 2015 and 2017 grew at an average annual rate of 4%.

According to figures from the Promotora del Comercio Exterior (Procomer), last year Costa Rica's food industry exports amounted to $1.618 billion, which is equivalent to an increase of 4.7% compared to the amount reported in 2016.

Demands of Businessmen in Costa Rica

February 2018

Facing a second round of elections scheduled for April 1, private sector unions are calling on the two candidates to present their economic proposals for reducing the uncertainty that currently weighs heavily on the business climate.

A solution to the fiscal problem, and options for reducing the cost of energy and other production costs that are affecting the country's competitiveness is what Costa Rican businessmen are asking of the candidates who will face a second round of elections on April 1. 

Costa Rica: Food Industry in Trouble

March 2015

In order to reverse poor performance in 2014 companies in the sector are trying to increase their sales in the Central American market, the main destination for exports.

For two years there has been a downward trend in exports in the food sector. In 2013 it reported $1.449 billion, while 2014 $1.441 billion was reported.

Value-Added Tax in Costa Rica

August 2010

Inevitable fiscal reform will include the implementation of a value-added tax (VAT), which is basically an extension of the existing Sales Tax.

While a sales tax is only on transfers of merchandise and certain kinds of service, VAT is a generic consumption tax on the sale of all goods and services. Usually exemptions and reduced rates are defined for goods and services that form part of the so-called basic shopping basket.

 close (x)

Receive more news about Agriculture & Food

Suscribe FOR FREE to CentralAmericaDATA EXPRESS.
The most important news of Central America, every day.

Type in your e-mail address:

* Al suscribirse, estará aceptando los terminos y condiciones


Gluten-free food business for sale

Operating Company dedicated to the manufacture of gluten-free and sugar-free products, OHNE brand.
The OHNE brand has 8 product lines: square bread, sweet...

Stock Indexes

(Apr 6)
Dow Jones
-5.60%
S&P 500
-5.10%
Nasdaq
-5.64%

Commodities

(Mar 27)
Brent Crude Oil
28.25
Coffee "C"
116.75
Gold
1,644
Silver
14.625