Costa Rican Basic Food Basket Prices Drop Less Than Overall Inflation-2 - Expat Community

Costa Rican Basic Food Basket Prices Drop Less Than Overall Inflation-2

Aug 30, 2023 | Costa Rica, News & Articles | 0 comments

The Minister of Finance, Nogui Acosta, found himself at the center of controversy after he attended a pivotal meeting with faction leaders and other deputies without presenting a counterproposal on the anticipated reduction of the “marchamo” tax. Discussions have been ongoing about the possibility of slashing this tax by up to 60%. Acosta acknowledged the government’s intent to reduce the tax but remained ambiguous about the specifics. His vagueness prompted criticism, with him stating that an acceptable reduction is one that both deputies and the government can agree on.

Deputy Francisco Nicolás was particularly vocal in his criticism. He attended the meeting and later insinuated that Minister Acosta’s tactics aimed at delaying the discussions. The objective, Nicolás inferred, was to run down the clock, ensuring that discussions wouldn’t conclude in time for the tax changes to be approved and implemented. Acosta refuted these allegations, emphasizing that any tax reductions should not jeopardize public finances and must be in compliance with the goals set by the International Monetary Fund (IMF) and the stipulations of the eurobonds.

In a post-meeting development, Nicolás went a step further by accusing Acosta of not just being evasive but of outright deception. He claimed that the minister presented alarmist data that painted an inaccurate picture of the impact of the proposed tax reduction. Despite these controversies, the minister reiterated his disapproval of the currently proposed project which seems to have enough votes for approval. Furthermore, it was reported that the deputies have garnered 38 votes in favor of sealing the project. Faction leaders continued discussions following their encounter with Acosta, contemplating a fast-track approval process for the proposal before October.


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