Costa Rica’s New Luxury Tax – Meat, Fruit and Floors Mops

Meat Department in Costa Rica Mercado Central, San Jose

The quality meats like t-bones and sirlones will be taxed an extra 13% with Costa Rica's new luxury tax hike.

I don't know what is going on with the government of Costa Rica and it seems like every day I/m feeling more sorry for the Ticos.

Last January, the government hammered the people with higher traffic fines, tolls increases and corporation Tax and before that,  the cigarette tax.

We all know how importing luxury items like cars, boats, electronic products are already taxed to death … however, this time, the new luxury tax has gone a bit too far because it hits within the daily consumer products and whose to say, what definds luxury?

On Monday (May7th) the government will impose a whopping 13% sales or luxury tax on 90 products to help increase their revenue.

Now this is what is weird, the government claims  these items are not part of the daily consumption of lower income groups. All this is according to the Encuesta Nacional de Ingresos y Gastos prepared by the Instituto Nacional de Estadística y Censos (National Survey of Income and Expenses).

The products that will get taxed, include meat, some fruits, and even bottled water, but not limited to, beef and pork tenderloin, t-bone, sirloin, salmon, paella rice, risotto, shrimp, lobster, oysters, kiwi, peaches, plums, eggplant, grapefruit, figs, potato and yuca flour, honey, cherries nectarines and some household products like floor mops and even a must buy product, mosquito repellant.

Give me a break, claiming floor mops, honey, and potatoes are items NOT used by lower income families. And why would grapefuit (an exported item) plums and figs be on the luxury list, considering they are nature fruits of Costa Rica.

Some of the products that will not be taxes are, chicken, sausage, bologna, fortified rice and without any additional ingredient and whole and pasteurized milk.

As you can image the outcry is everywhere. Many are raging about how the additional revenue is going to be used to give higher salaries to government officials, including the President … to, officials should be cutting their own salaries and not taxing the people.

Some are claiming, if you are going to tax, then tax eco-damaging products like trash bags, plastic bottles, and non-biodegradable products.

Oh boy, can't wait until a few months from now to see what is going to be taxed next.

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Comments

  1. chris says:

    and this exactly is why they will never have a strong middle class.. Only the have and have nots.. Sounds like the ticos need to stand up and fight. and it also sounds like Costa's gov has been listening to americas politicians too damn much..

  2. kaimana misshmacon says:

    Very disappointed, was planning on retiring there. Glad I didn’t purchase when I was there.

  3. Although I have only visited Costa Rica a few times, I had intentions of moving there in the near future, or at least finding a vacation home there. I fell in love with the environment, the people, and lifestyle. Unfortunately, Im now reconsidering my plans, and I'm steering my friends away.
    The government has gone too far, placing unnecessary financial bourdon on not only tourists, retires, but most importantly it's own people. All the new import taxes on food, necessary daily items, and excessive vehicle tax has changed my mind about the country I found so pleasantly welcome. Believe me, it is already spreading like wildfire here in California. Again, my main concern is for the people of Costa Rica, who made the country so inviting.
    I will be researching locations such as the neighbors to the south, as well as the north, who know better than to bite the hand that feeds you. It will take some time for tourism o due down, but unfortunately it's already the talk in my circles here in the US. Times are changing, and people I know dream to retire in Latin America, however government greed has not only ruined the US, but unfortunately now is taking its toll on the country I so looked forward to making a life in.
    I only hope this unfortunate trend can reverse before its too late. The locals already struggle with government selfishness. 
    Joe
    from California
     

  4. Dave Dion says:

    Who are the geniuses that put these laws into effect such as $600 traffic fines and then uh,oh we made a mistake and now we will lower them to $50. Why are any of these laws passed in the first place?

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