Costa Rica May Pass the Oil Price Burden on to the Commuter with new Gas Taxes.
Minister Rodrigo Arias has announced that the Executive Power presented a new bill to the Legislative Assembly that would eliminate the 97.59 colones tax that is now imposed on Diesel fuel, and that in turn, regular and super gas prices would rise, directly affecting regular commuters; a decision might prove to be difficult to swallow by some.
What this means is that Ticos would not have to pay taxes when they buy their diesel, but in contrast, those buying regular gasoline would have to pay a 140 colones more per liter and those using super will pay 152.25 colones more. In other words, a liter of gasoline will cost 784.25 and super 808.25; another steep rise to the already extreme prices. One wonders what they are thinking when already the population is struggling as it is. It is yet to be seen whether this is going to be approved by the legislators or not.
Jose Luis Araya, Vice Minister of the Treasury, explained that this is done in order to protect those who depend on diesel for a living, whether because they use diesel trucks for distributing goods for their business, or because they use public buses to go to work. All in all, it may all be very idealistic, but those using gasoline or super are not all millionaires. It goes without saying that while this new law would not cause too much stress to government Ministers, the majority of the population, who is already suffering due to the present prices, could come to a complete stand still. It will become too expensive to take the car to the super market!
This project also plans a 100% raise on the yearly tax (marchamo) when buying a diesel motor vehicle, except for buses or light weight trucks.
Minister Arias added that considering the world wide situation with the rising cost of oil, the government of Costa Rica felt it had to come to a fast decision in order to protect the productive sector as well as public transportation — those who would find themselves most affected by the cost of diesel. The main worry, he said, is the effect of oil prices on the cost of public transportation, which is the most widely used by the work force of the country, with an estimated 80% using public buses daily. Arias also points out that this decision was based on the fact that the most modest inhabitants of the country are those depending on diesel. While this may be true, it is wrong to say that everyone using gasoline or super can afford such heavy prices. The country waits in suspense as the deputies are getting ready to make a decision about the future of Costa Rica Travel.