New taxes probably will not win legislative approval

Leadership elections at the legislature a month ago put a snag in the Solís administration plans for new taxes.

Expats and foreign residents were concerns by rumors that new taxes would apply to income from foreign sources.

With anti-tax lawmakers in leadership roles and heading committees, the central government has little alternative than to push bills that do not contain new taxes.

Helio Fallas, the first vice president who also heads the Ministerio de Hacienda, has presented four measures that lawmakers might consider.  One measure would fight tax evasion. Another would reduce the many ways certain organization are exempt from some taxes. Another would strengthen the powers of the customs agency over imported merchandise.

As far as taxing the pension payments for foreign expats, Costa Rica maintains tax treaties with most First World nations that would exempt income on which taxes already has been paid even if such a bill were to be presented.

At the legislature, anti-tax lawmakers are trying to force the central government and President Luis Guillermo Solís to make substantial cuts in public spending.

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