LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

August 2, 2023

What Will Proposed Tax Reforms Mean for Costa Rica?

Costa Rican President Rodrigo Chaves’ government is seeking to pass a package of tax reforms. // File Photo: Costa Rican Government.

Q

A

Lucas Perelló, assistant professor of political science at Marist College: “Costa Rica has a pressing need for tax reform to strengthen the troubled state of its public finances. The government’s gross debt continuously expanded under the two center-left Citizens’ Action Party (PAC) presidencies from 2014 to 2022. As elsewhere, the government’s response to the Covid-19 pandemic led to a significant surge in debt, which reached 68 percent of GDP in 2021, according to the International Monetary Fund. In 2022, Rodrigo Chaves, who had a brief seven-month stint as minister of finance during the government of Carlos Alvarado, ran for president, promising tax reform. Hence, there was no question whether Chaves would present a tax reform. It was mostly about when that would happen. After months of speculation, his government unveiled the reform in May, rather late considering…”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Gene Kuleta
Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David
Goette-Luciak
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Nili Blanck
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Director,
Columbus Group

Merike Blofield
Professor of Political Science,
University of Hamburg

Devry Boughner Vorwerk
CEO,
DevryBV Sustainable Strategies

Joyce Chang
Global Head of Research,
J.P. Morgan

Marlene Fernández
Corporate Vice President for Gov’t Relations,
Arcos Dorados (McDonald’s)

Peter Hakim
President Emeritus,
Inter-American Dialogue

Donna Hrinak
Director,
Adtalem Global Education

Jon E. Huenemann
Council Member,
GLG Inc.

James R. Jones
Chairman,
Monarch Global Strategies

Craig Kelly
Senior Director,
Int’l Gov’t Relations,
Exxon Mobil

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

John Maisto
Director,
US Education Finance Group

Nicolas Mariscal
Chairman,
Grupo Marhnos

Thomas F. McLarty III
Chairman,
McLarty Associates

Beatrice Rangel
Director,
AMLA Consulting

Ernesto Revilla
Head of Latin American Economics, Citi

Gustavo Roosen
President,
IESA

Andrés Rozental
President, Rozental &
Asociados

Shelly Shetty
Managing Director,
Sovereigns, Fitch

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