July tax income was better than 2012

The finance ministry said Tuesday that tax collection in July was up 9.9 percent compared to last year despite a reduction in economic activity.

However, the minister,  Edgar Ayales, expressed concern about the fragility of public finance because financial activities and international circumstances have had a strong impact.

He said that this showed that the fiscal system should be strengthened.

His ministry, the Ministerio de Hacienda, is working to consolidate certain aspects of government income that will be presented in several months with the goal of generating a national discourse so that the finance of the government is sustainable, he said.

The Laura Chinchilla administration has been unsuccessful in getting a comprehensive tax plan passed. Although lawmakers were in agreement, the Sala IV constitutional court shot down much of the plan over the way the proposal was passed,

Since then, Casa Presidencial has been trying to institute parts of the proposal piecemeal.

Even though July showed more income, the financial deficit between expenses and income for the first six months of the year was about 3 percent of the gross internal product, the ministry said.

The ministry faces another challenge with the tobacco tax. The administration is trying to reduce tobacco use. Hence tax collections will be lower.

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