Court rejects tax on tourism activities

The Tribunal Contencioso Administrativa has rejected the central government’s effort to place a sales tax on tourism activities.

The Cámera Nacional de Turismo has called upon the Luis Guillermo Solís administration to refrain from appealing the decision.

The chamber presented the case last year after tax officials said that they would assess five years back taxes on tourism activities like bungee jumping, canopy tours, hiking, spas, bird watching and similar.

The tax proposal came from a redefinition of what is covered by the tax in the last days of the Laura Chinchilla administration. Later, government officials struck a deal with tourism operations to stage in the tax. But the chamber appealed anyway.

The victory might be short lived because a new proposal for a value-added tax probably will cover tourism activities, if passed.

The decision on the appeal came from a chamber press release.

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