By the A.M. Costa Rica staff

The tax for the right to drive a vehicle, known as marchamo, increased 6.07%, the National Insurance Institute announced Thursday.

According to the institute, the increase was because one of the components of the marchamo tax calculation, which is the accident insurance coverage, also increased.

The components of the cost of marchamo are:

- Vehicle ownership tax: 63.86%

- Mandatory insurance, known as SOA, 21.92%

- The percentage is given to the Road Safety Council, know as COSEVI: 5.70%

- The percentage delivered to the Public Transportation Council: 1.71%

- The percentage for maintenance payment of parking meters: 1.42%

- Cost of stamps and value added tax, known as IVA: 4.70%

- The percentage for Regulatory Authority of Public Services, know as ARESEP: 0.46%

- Other expenses: 0.23%

According to the institute, the automobile obligatory insurance increased by 8.4 %, due to the severity of traffic accidents.

This year, 1,560,343 vehicles, including cars, motorcycles, trucks, and buses are registered on the marchamo 2020 database with an expected income for the institute of more than $461,008,240.

According to the Institute, the period to pay the marchamo starts today and runs until Dec.r 31.

In case the owner does not pay on time, the institute will apply interest for delayed payment. Also, traffic officers will apply a fine of $100 and confiscate vehicle plates.

The institute has the toll-free line 800-6272-4266 to answer questions about the exact amount of the vehicle for each vehicle.

This increase in the cost of the marchamo, contrasts with the recent announcement of the Ministry of Finance on the decrease in the tax value of the vehicles.


As A.M. Costa Rica reported Oct 22, the Ministry of Finance said there were 2,488,774 vehicles registered in the country.

Of these, the majority will have a 7.14 percent decrease in fiscal value. That is the amount in which the ministry has valued the vehicles.

Due to this decrease in the value recorded by the ministry, the amount corresponding to the vehicle ownership tax for the year 2020 will be reduced between 3 and 6 percent, said the ministry in its statement.

According to the ministry, as of Nov. 1, the fiscal values of the vehicles will be reduced.

The new fiscal value of the vehicles may be reached on the ministry's website after today on the site Serviciosnet.Hacienda.go.cr

By typing the license plate number, the owner can obtain the updated reduced vehicle value registered by the ministry. In the case of a dispute on that same site, there is the option for the request for a revision of the value assigned to the vehicle. The annual road tax is based, in part, on the estimated vehicle value.

According to Marietta Montero, director of valuations of the ministry, to determine the tax, a valuation index is applied based on a formula established by law, which involves three factors: vehicle depreciation, accumulated inflation in the last year and change in the tax applied to vehicles.

"The analysis of these factors resulted in a 7.14 percent decrease in the value of most vehicles by 2020," said Montero.

In the case of new vehicles, the application of the decrease in the tax value does not apply, said the ministry.

Public transport vehicles, such as taxis and buses, have a fixed fiscal value.

The calculations also apply to the fiscal value of motorcycles.

Public transport vehicles and motorcycles' fiscal values can be found at the same link posted above.

According to the ministry, 50 percent of the income resulting from the collection of the road tax goes to the National Road Council,  to invest in road infrastructure.

The other 50 percent remains in the government's general fund to invest in education, security, housing, among others, said the ministry.


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Do you have to pay an annual tax for the right to drive your vehicle in your country?   We would like to know your thoughts on this story. Send your comments to news@amcostarica.com
 

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