The Costa Rican Tourism Institute (ICT) opposes bill 23.763 of the Ministry of Finance, which proposes to increase the VAT on airline tickets from 4% to 13% for travel to and from Costa Rica. The ICT argues that this measure would affect the country's competitiveness as a tourist destination, making tickets more expensive without a cost-benefit analysis of their impact on the industry and tourist arrivals. In addition, they point out that the additional income would not directly support tourism development. Therefore, the ICT does not support the legislative proposal.
Debate on VAT on Airline Tickets
Treasury Proposal
- Bill 23.763
- VAT increase: 4% to 13%
- Application: Flights to/from CR
ICT opposition
- Competitiveness impact
- Lack of cost-benefit analysis
- No direct benefit to tourism