QCOSTARICA – A casado without meat or eggs would be the meal for many if the government’s new tax reform is passed as presented to the Legislative Assembly.
The casado is a traditional Costa Rican dish of rice, beans, platano, egg and a piece of meat – steak, chicken or pork. But, under the new tax plan, the piece of meat or egg would be a luxury.
The tax reform introduces a number of changes to the present system, like the move from the current 13% sales tax on goods to a value added tax (VAT) on goods and services. The proposal also raises the tax from 13% to 14% in the first year of the new tax and 15% starting on the second.
What this change alone mans is that many of the goods and services commonly used everyday will be taxed, including a number of items in the “canasta basica” (basic basket). In real terms, it means that a family spending ¢100,000 colones on their shopping would have to pay ¢115,000 for the same purchase.
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