The Costa Rica News (TCRN) – Costa Rica needs tax reform soon that will give fresh breath to their public finances, which have deteriorated due to a slowing economy and growing their debt to a hazardous level, a study recently claimed.
Analysis of the Situation, released today by the Central American Institute for Fiscal Studies (ICEFI) notes that during 2013 Costa Rica’s economy has slowed and only grown just 3.5%, while for 2014 it is not expect to improve much and is speculated to only be 3.8%.
ICEFI director, Jonathan Menkos, told a press conference that the candidates for President of Costa Rica, a country with a fiscal deficit for 2014 of 6.3% of Gross Domestic Product (GDP), should consider the need for tax reform and present a proposal to the electorate.
“Costa Rica is the only Central American country that has not approved a tax reform after the economic crisis in 2008,” said Menkos.
The analyst said that tax reform should be accompanied by a series of measures to ensure “fiscal transparency” because of public distrust.
He explained that these measures should be addressed to the population so that they know and understand the tax information of the country and ensure that there is a mechanism of accountability to build trust.
ICEFI report data indicates that the debt of the Central Government of Costa Rica in 2011 reached around 32% of GDP and in 2012 rose to 36% and it is expected to reach 39% in 2013.
The Costa Rica News (TCRN)
San Jose Costa Rica