What does it allege and what does its rejection imply for the initiative?
The Costa Rican Government opposes the proposal to reduce income tax for self-employed workers, arguing that it does not include compensatory measures to cover the loss of tax revenues, estimated at ¢7,000 million per year. Although the proposal was approved in the first debate, it is being evaluated by the Constitutional Chamber. If approved, the Executive plans to veto it, which would force the Legislative Assembly to gather a qualified majority to pass it into law. The fiscal term and the legislative recesses complicate its processing.
Opposition to Tax Reform
Government arguments
- Lack of fiscal compensation
- Impact: ¢7,000 million per year
- Possible presidential veto
Project Status
- Approved first debate
- Under constitutional review
- Tight legislative deadlines