Industry Unhappy with VAT Exemption

Costa Rican industrialists believe the VAT exemption proposed by the Executive will be ineffective.

Friday, November 4, 2011

A press release from the Costa Rica Chamber of Industry states:

Surprised. This was the reaction of industrialists on learning of the filing of an amendment to the Solidarity Tax Act Project by the Ministry of the Economy and Ministry of Finance, relating to value added tax.

The motion includes a list of exempted goods, which does not take into account all the industrial raw materials used in their production, such as packaging material, labels and electricity.

"We were taken aback by the filing of this motion, which we have not had the opportunity to study in detail, however, based on information shared with the press through a newsletter, it does not represent an acceptable situation for most industrial enterprises who produce exempted goods", said Marco Meneses, President of the Costa Rican Chamber of Industry.

"While we know that the government has heard our argument with regard to the way the treatment being given to these products will affect competitiveness and therefore impact on the price paid by consumers, the solution seems to be far from acceptable in that it is partial, poorly studied, and above all, has not been discussed", stressed Meneses.

The industrialists are insisting that consideration be given to granting accreditation to all raw materials and inputs used in the production of exempted products, including packaging materials, labels, and electricity, but are still waiting for an opportunity to discuss the sector’s concerns on this matter with both ministries.



More on this topic

Energy: Law Reformed in Nicaragua

September 2020

After the National Assembly modified the Law for the Promotion of Electricity Generation with Renewable Sources and its reforms, clean energy generators will be able to negotiate the lowering of current prices and in exchange they will receive five additional years of tax exemption.

The initiative, urgently submitted by President Daniel Ortega, exposes the voluntary negotiation process being carried out with electricity generators from renewable sources for the benefit of the Nicaraguan population and the country's economic sectors, the National Assembly reported.

Tax Incentives for Agriculture

January 2020

In order for Guatemalan producers to compete under the same conditions as neighboring countries, the government is preparing a bill that seeks to exempt agricultural inputs from VAT.

The initiative, known as the "Fiscal Equity Law", is being prepared by the Ministry of Agriculture, Livestock and Food (Maga), because, according to the institution's top official, other Central American countries do not charge value-added tax (VAT) on agricultural inputs.

Dual Education: A Triumph in Costa Rica

August 2019

For the business sector, the approval in the second debate of the draft law on dual technical education and training will make it possible to combat the worrying rise in unemployment and ensure the training of a greater number of technicians in strategic areas.

The Legislative Assembly reported on the afternoon of August 12 that with the affirmative vote of 49 deputies, the second debate was given to file N°20.786, Law of dual technical education and training, thus opening the possibility for students to perform work experience in companies and continue their studies in technical training centers.

Guatemala: Notional VAT Calculation Annulled

March 2014

Citing unconstitutionality power has been taken away from the tax authorities to determine the basis for calculating tax owed in respect of Value Added Tax.

A paragraph in Article 7 of the Law on Value Added Tax (VAT) which was declared unconstitutional provided: "In the case that a taxpayer, within three months, reports in their declaration of turnover sales rates that are lower than at cost or production of goods, the tax authorities may determine the basis for calculating the tax owed, taking into consideration the sale price of the same product in other transactions of the same taxpayer within the same time ... unless the taxpayer can justify and demonstrate the reasons why this situation occurred and present banking and financial information proving their real income. "

 close (x)

Receive more news about Government

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

(Nov 25)
Brent Crude Oil
48.38
Coffee "C"
116.65
Gold
1,807
Silver
23.35