Over the last 15 years, Costa Rica has attempted many different
reforms [to improve the fiscal balance]. None of them were
successful. Among other reasons, this was because people
didn’t believe that paying more tax would improve
PARTING SHOT: Another way
Despite a rising deficit, mounting borrowing costs
and currency volatility, Costa Rica can avoid a ratings
downgrade, says its new president Luis Guillermo Solís
When you look at the numbers, you find that inequality was
increasing, corruption was increasing, and a number of things
that had to be done by the government were not being done
So we decided to try another way: just do our job, collect
taxes better — because tax evasion in Costa Rica is a
national sport, reaching around 50% in income tax.
That’s too much. We decided to deal with it [via a
new tax law, presented to parliament in June).
At the same...
Already have an account?
Subscribe now for unlimited access to all current and archive news, data and market analysis.
Take a free two-week trial now for the latest news, data and market analysis.