Among the most important exemptions are sales tax (3.68% of GDP) and income tax (1.82% of GDP).
A study by the Fiscal Studies Program at the School of Economics, at the National University, with the support of Ministry of Finance, is the first formal tax expenditure study that has been conducted in Costa Rica.
"Tax expenditure is defined as the level of income foregone by the government when applying to a person, company or sector, tax treatment distinct from that which applies generally.
The report concludes that Costa Rica has one of the highest tax expenditures in Latin American", reported EFE.
Source: Yahoo! Noticias
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May 2011
The fiscal deficit increased by 26.5% in the first 4 months of the year and has reached $733.3 million.
The amount is equivalent to 1.8% of Gross Domestic Product (GDP). In the same period in 2010, the amount was $579.8 million.
"We are seeing a larger financial deficit than the previous year in terms of GDP, which is consistent with the current projection that the deficit in 2011 would exceed 5% of GDP, " said the Finance Minister in office, Randall Garcia in an article publishes by ADN.es, "He reiterated the need for the country to adopt a tax reform ..."
January 2011
Summary of the legal tax reform aiming at increasing tax revenue by $ 1.000 million, or 2.5% of GDP.
The so-called Solidarity Tax Bill was presented yesterday to the Legislature by the Executive Branch.
The initiative seeks to increase tax revenues by 2.5% of gross domestic product (GDP) which, coupled with the implementation of measures to increase revenue and reduce spending, would balance the public budget.
August 2011
In July, the difference between total revenue and expenditure was $87 million. The deficit does not include interest expenses, which amount to $527 million a year, 17.7% more than recorded in July 2010.
A press release by ALDESA reads:
“The July figures for revenues and expenditures by the Central Government are not very encouraging and continue to show the existence of harmful primary deficit.
June 2011
The governments new proposal for tax reform will mean less funds will be collected compared to the original.
In order to get approval from Congress, who since the first version of the tax reform has blocked its passing, the Executive has submitted a newer version of the bill, which provides for a number of amendments requested by the opposition.
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