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."
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.
The Executive is proposing to reform the scope of the law and charge a "registration for coffee production fee" of $0.50 per hundredweight.
Despite the outbreak of coffee rust, the debt of $200 million and the funding crisis facing the coffee sector, the Salvadoran government intends to collect more taxes. Currently the bill raised by the Executive Branch is being analyzed by the agricultural legislative committee.
Although the banks had sought to extend the term, starting September 1 entities must charge 0,25% on operations over $1000.
From September 1 banks, credit unions and savings and loans companies must withhold 0.25% for every transaction in made in cash, by check or electronically worth over $1,000.
The Directorate General of Internal Revenue, at the Ministry of Finance has published the regulations that refer to the new taxes. The Salvadoran Banking Association (ABANSA) told Elsalvador.com that "... Banks, which are from today retaining the tax, are still analyzing the document. The president of the bank union, Armando Arias said in recent days that because they are not equipped with technological resources and trained personnel, they will begin collecting taxes manually, generating more delays for customers in the banking system. "
A bill aims to tax properties of any value that either do or do not have constructions on them, and which do not have a specific use anywhere in the country, declaring them "luxury goods".
The proposed law states that "... property for recreation, leisure or rest, with or without construction or under construction, regardless of its value or location , such as houses, lots, plots, villas located in beaches, lakes, mountains or the city ... "will be taxed at 1% on the assessed value established for the property.
Warnings have been given that the tax in the approval process in the Legislature would create more evasion affecting all sectors of society.
The new tax would be of 0.25% on financial transactions exceeding $750, applied to the deposit holders who ordered payments or transfers and financial entities performing loan disbursements of any kind.
Added to the normal negative effects of a new tax, such as being an incentive for evasion, discouragement of investment, and in this case generation of inflation, are also "... The ambiguity in the wording ... "it is not clear if this excludes tax remittances, since ' ... the majority of remittances entering the country are money transfers to third parties using an electronic system.'
The private sector is opposed to the conditions in the third reform package the outgoing government intends to implement, claiming that state expenditures should be reduced first.
More control of public spending and no new taxes are the demands from employers to the government, which aims to increase government revenues with a third reform and the issuance of $800 million in bonds.
Businessmen indicate lack of consultation with the affected sectors, and have expressed their concern about the impact of the new tax on competitiveness.
Bill 559, which amends sections of Act 45 of 1995 on the excise tax on alcoholic beverages was approved on its third reading by the full Legislature.
If passed the new reform would create taxes for financial transactions, unproductive properties and newspapers.
Elsalvador.com reports that Carlos Caceres, head of the Ministry of Finance stated that "The President (of the Republic) has instructed the Ministry to evaluate a proposal acceptable to him and to society, that is politically acceptable and not damaging to the productive sectors and to the poorest people. "
Warnings from Honduran businesses about the flight of capital resulting from the application of the controversial tax on banking transactions (known in Spanish as the ‘Tason’), are coming true.
This is how representatives from Honduran companies explained things, after statements from President Porfirio Lobo recognized a reduction in revenue because of the "Tason".
A tax of 4 cents per cigarette has entered into force in Costa Rica, which was been passed onto consumers by the tobacco companies.
On Monday companies raised the price of a pack of cigarettes by 400 colones ($0.80), thereby passing on the tax of 20 ¢ per cigarette imposed on them under Control of Tobacco Act.
A legal reform establishes imposing a single municipal tax of 1.5% for mobile, fixed line, internet and cable television operators,.
Given the lack of uniformity and randomness of tax collections by municipalities, Congress has amended section 75 of the Municipalities Act to establish an annual payment for telecommunications companies to municipalities.
After being approved by the Special Commission, the bill has moved on to the legislative plenary discussion.
The project aims to reduce the fiscal deficit, which currently stands at 3.2% of gross domestic product, and could be approved by the plenary of the Legislative Assembly before the end of the year.
"The initiative introduces a national law on value added tax (VAT) as agreed by the Executive and the Citizen Action Party (PAC) with a 14% tax on the sale of goods and services and which would replace the current sales tax of 13%.
And apparently for bureaucracies in general, including those of international organizations; an "expert" from the Inter-American Development Bank is supporting tax reform in Costa Rica.
Although officially the IDB "does not advocate a tax burden or specific tax policy," one of its officials warmly supports the project to increase the tax burden to support the Costa Rican economy, to the point of suggesting that the tax burden be similar to Argentina’s.
español
2921
