Costa Rican President Chaves proposes tiered VAT on basic food basket

Costa Rican President Chaves has proposed a tiered VAT on basic food items, aiming to exempt lower-income households while taxing higher-income groups. This reform is currently stalled by legislative opposition, with the Frente Amplio party linking its support for Eurobond legislation to the preservation of existing VAT exemptions. The specific implementation mechanisms and criteria for income stratification remain undefined, contributing to uncertainty regarding the proposal's feasibility and economic impact.