Costa Rica President Laura Fernández Rejects Proposed VAT Increase on Basic Goods

Priest Jeison Víquez Acuña spoke at the Nicoya annexation ceremony, warning that eliminating the VAT exemption on the basic basket of goods could raise the tax rate to 13%, which he said would hurt low‑income families. President Laura Fernández responded, insisting that her administration will not raise taxes or create new ones, and criticized those spreading fear about a tax hike.

Analysts note that the debate reflects deeper fiscal challenges for Costa Rica, including the need for a more dynamic economy, greater investment, security improvements, and support for agriculture. The government has been considering fiscal measures to boost revenue, while emphasizing that economic stability depends on investment, job creation, and public safety.