Acción Ciudadana promotes its view of tax restructuring

The Partido Acción Ciudadana promoted its view of tax legislation in a seminar Thursday. The party’s lawmakers had enough members that they influenced the tax package that now is being studied by a special commission.

Acción Ciudadana did not sign on to the tax package until Casa Presidencial made significant changes. In general, the party is pushing for higher taxes on high earners and less taxes for those near or under the poverty line. Some of the proposals were topics of the seminar Thursday.

Acción Ciudadana successfully pushed for expansion of the number of basic products that are to be exempted from taxation. There are now 228 categories of food products and daily needs that will be exempt from the proposed 14 percent value-added tax if the measure is passed in its present form.

The party also is seeking a 50 percent tax on so-called luxury
automobiles, those worth more than 18 million colons or about $35,100.

The party also wants public utilities exempt from the taxes users pay now, and it successfully negotiated to lower the proposed tax on private education and medical treatment and providers from 14 percent to 2 per cent.

The party also is working to increase the amount of money a wage earner can bring in each month without paying taxes at the end of the fiscal year.

Among other proposals, Acción Ciudadana seeks a global tax so that money earned anywhere by Costa Ricans and residents is subject to a tax here unless more tax has been paid elsewhere.

The party also wants to exempt micro and small organic agricultural operations from taxes.

This is the third effort to get a tax package passed by the legislature.

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