Thursday, March 21, 2019

Why Are Taxes Going Up on Some Basic Foods in Costa Rica?

The changes being made this year to the “canasta basica,” or basic basket, have sparked some discussion and debate. Why are some nutritional foods being taken off of this list and some with little nutritional value being added?

President Carlos Alvarado spoke out about his opinion on the matter. He suggests that we must educate the general public about the consumption of more nutritious foods.

The list will contain the 188 products that the population with the lowest incomes typically eat. These items will be subject to just 1% tax instead of 13%. It’s a means to protect the families with fewer resources.

The list is based on consumption statistics by socioeconomic sectors, surveys of what the population normally eats, not on any nutritional information. This means that some healthy foods were taken off the list because those who buy them are among the richest and the poorest don’t buy them. Some foods have also been added because of the survey results. These include green banana, chiverre, yucca, horchata and goat’s milk.

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