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.
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.
The recently published new legislation establishes an increase of 12% to 15% in sales tax.
The Law on Ordering Public Finance, Control of Exemptions and Antievasion Measures includes 72 foods which had been excluded from payment of Sales Tax (ISV by its initials in Spanish) among which are ribs of beef, pork, chicken, natural cows milk, pasteurized milk, whole milk powder, butter and others.
Public consultation is being given to the draft reform proposed by the Ministry of Finance to the Law of General Sales Tax.
From a statement issued by the Ministry of Finance of Costa Rica:
• Proposal is available to read at www.hacienda.go.cr
The Ministry of Finance today made available to the public, a proposal for draft amendments to the Law on General Sales Tax Act and Income Tax, aiming to open up a space to receive observations and recommendations from the sectors and citizens interested in participating in this process, which is needed to strengthen public finances and achieve a National Agreement for Social Development.
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