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Published Wednesday, April 29,
2020
Tourism Chamber
calls for an extension on tax exempt ruleThe Tourism Chamber, Canatur, made a call on Tuesday to the government to extend the deadline for exemption of sales tax, so-called IVA. According to the Chamber, the government must present before the deputies of the congress, a bill to extend for one more year the exemption from IVA to all tourist services. This a precise measure for the economic reactivation that allows for no increase in the price of tourism services. The Public Finance Strengthening Law establishes that tourist services will be exempt from sales tax during the first year of the law, from July 2019 to July 2020. After one year, tourism services must charge 4% taxes. The following year, the tax increased to 8 percent. Until gradually reaching a 13% tax. This means that as of July 1, all tourism-related services would begin to charge a 4% sales tax. According to the Chamber, on April 24, the government had presented the bill of the deputy Roberto Thompson, requesting to extend one year the collection of IVA tax on tourist activities. However, the government reversed that request in two hours. "This is incomprehensible when the government is aware that tourism is currently one of the sectors that are suffering the most from the effects of the pandemic," said Ruben Acon, president of Canatur. "Starting to tax tourism services that until now are exempt is, without a doubt, a measure contrary to the needs of reactivation, this makes services more expensive and discourages people from traveling in the future." According to the Chamber, it is very important that tourists postpone their vacations instead of canceling them, however, if the trip is postponed to after July 1, they must pay that extra 4% of the IVA tax, which implies a more expensive final cost, and this can lead consumers to cancel their reservation. Members of the Chamber hope the government will present deputy Thompson's project again "as a sign of interest in rescuing the tourism industry," said Acon. This is the second Chamber related to the tourism industry that is facing the crisis created by the preventive measures imposed by the government to avoid the increase of covid-19 in the country.  The Costa Rican Hotels Chamber, CCH, announced on April 7, that it is unfeasible to proceed with full refunds to its guests due to booking cancellations. Most of the hotels in the country have suspended or reduced to a minimum its operations, maintaining a part of their employees and applying the reduction of working hours, as the last option, said the Chamber in its statement. According to the Chamber, paying back the money will become an aggravating situation for the tourism economic sector already affected by the coronavirus covid-19 crisis. As there are no tourists, tourism entrepreneurs present financial problems in their businesses, said the Chamber in its statement. --------------------- Should the government speed the process of the approval by the Congress for an extra period of tax exemption? We would like to know your thoughts on this story. Send your comments to news@amcostarica.com |
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