Dear A.M. Costa Rica:
I read the article in Monday’s edition about the government taking 1.78 percent withholding from all credit card purchases. It made it sound like this was a new and onerous tax payment, but that is not so. Every business in Costa Rica is taxed at a flat rate of 30 percent of profits. We have all heard that tax payment and tax collection is seldom achieved. This small portion of tax ensures that restaurants and bars and other businesses will file or if they fail to file will have, at least, submitted something to the tax department. Seems fair to me. There certainly would be no justification for a statement or action like “good business practices would mean ratcheting up slightly the amount charged to the customer to compensate for the governmental bite”.
San Pedro de Poás, Alajuela