PoliticsNotableSingle-sourceDeveloping
5.3
Costa Rica government evaluates removing VAT exemptions on basic food basket
El FinancieroLO·CR·1 day ago
A study by Cinpe-UNA indicates that a VAT increase would disproportionately burden lower-income households, who spend 44.1% of their income on basic food items compared to 9.9% for higher-income groups. The findings provide empirical data for ongoing domestic debates regarding fiscal policy and tax reform in Costa Rica.