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Banks in Costa Rica join chorus of protests over plans for fiscal reform. Objections to value-added and unearned income taxes

Friday, November 4, 2011

The tax reform proposed by the Costa Rican government and currently before the Legislative Assembly, is raising cries of pain from many sectors.

This week, Costa Rica's national and private banks added their voices to those of foreign businesses doing business in free zone industrial parks in disputing the wisdom of some of the new proposed measures.

In the case of the banks, they are worried about two provisions in the bill. One is a 14 percent value-added tax on fees levied on financial transactions. Even more onerous to banking officials is a plan to place a 15 percent tax on unearned income, applied to certificates of deposit.

Original source: Inside Costa Rica