There is NO ONE advocating the removal, reduction or change of the 10 percent service charge or automatic tip required by law in Costa Rica.
What many entities, including ProTur are talking about is that the government recently decided to tax that 10 per cent as income to the waiter or waitress. That was opposed by many groups especially the Ministerio de Trabajo. However, it is currently in the process of implementation, the income tax being imposed for the employer to pay on the tips of waitresses and waiters.
We are totally in favor of the 10 percent service charge. We all know our employees need it, deserve it and should have it. We are opposed to the making of this “tax”for service to be doubly taxed to the employer, which only increases our costs to offer good service.
No one wants to pay tax on a tax. The constitution in Costa Rica DOES NOT have a law that prevents double taxation, and we are frequently taxed on taxes and more taxes. Some services are taxed three or four times. We are simply trying to keep from raising prices to our customers who already are charged a 13 percent sales tax and a 10 per cent service charge.
I hope people understand the difference. There is no one advocating that the 10 per cent service charge be removed. We are advocating that the government NOT impose another tax on the same tax.