The Cámara Costarricense de la Construcción said that it estimated that the proposed value-added tax will jack up the price of housing about 11.36 percent. It said this would hurt middle-income families.
The calculations used the proposal for a 14 percent value-added tax and a proposal to double the transfer tax on a home to 3 percent, the chamber said.
Both proposals have been advanced by the Chinchilla administration and are now in the legislature.
The chamber said that the tax proposals contradict directly the stated government housing plan where the goal is to reduce cost and improve the quality and financing for building homes for the lower and middle class.
Chamber President Ricardo Castro said that construction permits were down 15 percent in May when compared to the same month a year ago.