Requests have been made for the clarification of which telecommunications services are to be taxed with VAT, since it is unclear whether it is information services or telecommunications which would be taxed.
Currently telecommunications services are charged sales tax, even though the Costa Rican government aims to close the digital divide. With this new reform proposal, a Value Added Tax (VAT) of 15%, "would be incurred ...
Even though demand continues to grow, operators are not able to grow due to lack of effective competition in the mobile market and delays in the allocation of spectrum.
A portion of customers in the cellular market and other telecommunications services such as internet and cable television are still dissatisfied, but telecommunications companies are not able to increase their services due to the slow rate at which the rules are set and at which infrastructure problems are addressed.
A change in the law requires more than 500 companies to cease using radio frequencies that had been granted to them on a temporary basis before 2008.
The companies grouped in the Chamber of Info-communication claimed that the frequencies granted temporarily under the law prior to 2008, are eligible for authorization for permanent operation, but that "...
Regulation of mobile telephony tariffs is preventing the development of efficient services and competition between operators.
Removing the tariff regulations on cellular services and improving the availability and access to broadband should be a priority for the new government, say experts in the field.
"Fabio Masís, executive director of the Chamber of Information and Technology Association says it is necessary to issue a declaration of effective mobile phone service competition so that operators can really compete for prices," reported Crhoy.com.
The Government is considering a possible tender for a new radio frequency block that would provide fourth-generation mobile services.
Alejandro Cruz, Minister of Science, Technology and Telecommunications (Micitt), asked the Sutel to define the future of the 70 MHz block not auctioned in 2011, when Telefonica and Claro were awarded frequencies. These companies have shown interest in having more spectrum to expand the supply of fast mobile Internet services.
In Costa Rica the tax authority (DGT) interpreted that internet access should pay sales taxes (13%).
This has caused negative reactions from many sectors, for example the Technology Chamber, headed by Fabio Masís, stated that “prices are expected to increase, with negative consequences on low income users”, and that this decision violates the Constitution.
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