One again, as the New Year gets started, Costa Rican’s will find themselves paying more to the government.
Ticos by nature are non-aggressive, but this time the government may experience what American’s have seen, “country wide protests” and what some of the Bloggers are writing about, “WTF – The don’t understand land!”
Starting today (Jan 1, 2012) Costa Rica will see ( to name the few) higher traffic Fines, increase in tolls, and new tax(es), particularly on corporations, which is caused a bit of confusion.
Traffic Fines and Vehicle Registration
Just about all traffic fines will go up on average ¢44.000 colones. And for the existing high fines that have not been paid, expect a hike of 14%. In other words, a ¢316.000 fine suddenly becomes ¢360.000.
Private cars and Motorcycles will pay on between 30% to 43% more for registration and general taxes.
Traffic fines can be paid at some banks, but then again, find a bank open on Sunday and without a mile long line, and if you can’t pay, one had better keep a sharp eye for a Tránsito official who will be looking for that missing 2012 sticker on your windshield.
Oh yes, almost forget, on top of the traffic violation fines, there does come a good thing, an additional 30% for PANI (National Children Board).
All fines that are paid one month late, expect an additional 3%.
More on this visit Registro Nacional Vehiculos Marchamo.
According to the Government, this increase is based on the automatic adjustment of 14% to the “regular annual salary of an auxiliary employee of the Judiciary,” or the additional cost for setting and administrating the amounts of the traffic fines – or to put it bluntly, to help pay for the salary increases for last year.
Auxiliary employees of the Judiciary make about three times the salary than the average Costa Rican.
Costa Rican's will be paying more at the toll roads this year
Toll Roads
Funny how suddenly the tolls on the San José Caldera will go up about ¢10 colones as a few hundred thousand vehicles head home from the beaches and mountain resorts after the Holiday. Perfect example of the cliché, “Timing is everything.”
New Corporation Tax
This is probably the most confusing of all taxes. Although some say this will not affect the average Tico, no doubt the effects of this will be felt. All active corporations are required to pay an additional $300USD in the coming weeks. If you have an inactive corporation, it will cost $300 + to abolish it. The penalty for not paying the corporation tax is to lose the corporation.
Now this is the confusing part. Does this tax apply to a Limited Liability Corp instead of an S.A.? And what about those that own more than one corporation? Does the tax apply to merging corporation?
More on this visit Annual Tax – Costa Rica Law
According to the government, this tax on corporations is (now get this) is suppose to be earmarked to fight Costa Rica’s rising crime in the country. The tax (if collected and administered correctly) is suppose to help equip Costa Rica’s police forces with new crime fighting equipment (which is suppose to be, new radios, cars, training etc.). All I can say on this, I hope they don’t hire actor Steven Seagul … and there is a lot of “supposes to.”
According to Presidenta Chinchilla, her government will continue to forge ahead on the Plan Fiscal (tax reform) in 2012. Just another suppose to!
Parting note: In the next few months expect to see a landslide of rate increases in public utilities and other services.
Happy New Year.
Any news on the crazy $600.00 camera speeding tickets. As a rental car customer who got one and was charged on my credit card. What are my rights if my rental car agency said “they” will “fight” for me?
If your rental company says, they will fight, personally why should they when they already have your money?