Reduction on Vehicle Taxes in Costa Rica

Deputies have approved, with 43 votes in favor and none against, a bill to reduce the tax on vehicle ownership to vehicles whose fiscal value is less than ₡15 million.

Vehicles with a value of up to ₡7 million will pay 50% of the vehicle tax. Those valued between ₡7 million and ₡10 million will get a 25% discount and those valued between ₡10 million and ₡15 million will get a discount of 15%.

This, unfortunately, leaves a gap of at least ₡50,000 million in income that the Government had expected to use to cover end-of-year expenses, like Christmas bonuses for public officials.

This is a gap of almost 0.15% of the GDP. The 2020 budget reflects a deficit of over 11% of the GDP, a historical figure that is bringing us closer to an economic crisis.

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