The fiscal reform was finally approved in Costa Rica, after receiving in Congress 34 votes in favor and 17 against during the second debate.

After two governments attempted and failed to move forward with a fiscal reform and after more than 80 days of strike movements opposing the plan, the approval finally came the afternoon of this Monday, December 3.

The fiscal plan intends to bring economic stability to the country, bringing down the fiscal deficit, and offering confidence to international markets.

President of Costa Rica, Carlos Alvarado, reconfirmed the priorities of the Government after the approval of the fiscal plan: employment and reactivation, dialogue, a strong agenda of inclusion and reforms to the State and education.

“This is not a minor achievement. IT has not been easy, not everything is resolved and it will take time to see the most impactful results, but we have managed to pull through: Costa Rica had the capacity to avoid a crisis”, stated President Alvarado.

The establishment of a Value Added Tax system (VAT) of 13% is one of the most important measures included in the fiscal reform, as well as global rent.

The fiscal plan had been approved in first debate on October 5th, it was then sent to consultation to the Constitutional Chamber and the judges determined unanimously, that they did not find vices in the procedure or form of the project giving green light to Congress to vote it in second debate.

The Government has been clear that even though the fiscal plan does not fix all the problems, it is a first step towards stability. The Legislative Assembly now has other bills to discuss that are complementary to the fiscal plan.