According to Jose Carballo, president of the Costa Rican Automotive Chamber, the industry complains that 52% is charged for new vehicles, while used cars which are over six years old are charged 79%.

"The tax burden is calculated using a ranking system, explained the Director of Taxation, Carlos Vargas, this means that vehicles from zero to three years old pay 52.29%, four to five years 63.91% and six years or more 79.03%", reported Nacion.com.

"Cars that are zero to three years old represent 85% of the tax collection, the four to five year old cars, only 2% and those more than six years old 13%, so with these figures provided by the Treasury, it can be seen that we, the importers of new cars, pay the most taxes," said Lilliana Aguilar, executive director of the Association of Importers, Machinery and Related Materials (Aivema), noting that new and used cars are "different goods" and should be treated as such.

According to Carballo, during 2013 a total of 60 companies have closed their businesses due to low sales and high import costs.

Source: Nacion.com

More on this topic

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Between January and June this year 43,975 new and used units were imported, which is about 7,509 more than in the same period in 2013.

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Costa Rica: Selective Tax on Used Vehicles

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From a press release from the Ministry of Finance in Costa Rica:

The Ministry of Finance reported today that after reviewing the effects of the update of the value of the vehicles that has been in force since December 2012, the implementation of the new Law on Transit, and the small amount of economic activity of the vehicle import sector this year, the Unit has determined an adjustment to the tax rates applicable on selective consumption, in order to give coherence to the tax system between the new values ​​and the tax rate.

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According to data provided by the Ministry of Finance, the reduction was seen mainly in cars and a little less on vehicles used to transport goods.