The Ministry of Finance has decided to include in the list of exemptions meats such as steaks, ground beef, sirloin tip, brisket, liver and tongue, and others.
Also exempted is honey, fish, other than those consumed by higher income sectors, such as tuna filets, cod and salmon, reported Nacion.com.
"In this way, there is a conclusion to the conversation around this issue, in which representatives took part from different sectors of industry and commerce including food industry members, the livestock sector, hog farmers, fishing and apiculture," the ministry said in a statement according to Nacion.com.
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Costa Rica's government has amended a decree issued last week which levies with a tax of 13% products like wheat flour bread, milk and packaged beans .
Besides the aforementioned products, others that remain exempt from the 13% Sales Tax (IV in Spanish) include tinned tuna, with or without vegetables, sausages packed in sealed plastic, and cheese packaged in sealed plastic without any degree of maturation.
Due to the government’s need to increase tax revenue in Costa Rica several types of meat and fruit will incur sales tax of 13% from Monday .
Among the types of products that will be taxed from now on with 13% sales tax are beef and pork loins, beef tenderloin and pork t-bone, Delmonico, sirloin, salmon, rice paella, risotto, shrimp, lobster, oysters, kiwi, plums, prunes, cherries and peaches, reports Nacion.com.
Changes introduced by the government of Costa Rica in the composition of the staple goods basket, have forced producers to pay 13% more for raw materials.
An article in Elfinancierocr.com reports that "Diego Gil, vice president of the Chamber and exporter of ornamental plants, believes that for a sector full of micro and small businesses, it is unsustainable for most of them not to be able to include the 13% tax on sales of their products because it is unclear if they are exonerated, but they have to pay their suppliers of raw materials."
In Costa Rica the tax authority (DGT) interpreted that internet access should pay sales taxes (13%).
This has caused negative reactions from many sectors, for example the Technology Chamber, headed by Fabio Masís, stated that “prices are expected to increase, with negative consequences on low income users”, and that this decision violates the Constitution.