Proposals for new taxes are on the executive agenda
The executive branch has sent legislators 38 law proposals to be considered and perhaps acted upon during the so-called extraordinary session that begins Aug. 1
Among the proposals, according to legislative sources, is an executive branch proposal for changes in the income tax law and a law to create new taxes for the elimination of slums. Two other pressing issues are a change to stop the new immigration law from going into effect and the approval of a number of loans, including one for $130 million from the government of Japan to help redo the Central Valley sewer system.
The Costa Rican Constitution says that the Asamblea Legislativa may only meet from May 1 to July 31 and from Sept. 1 to Nov. 30. In order to keep the legislature working, this administration as well as previous ones have called the lawmakers into extraordinary session, which also is permitted by the Constitution.
During these special periods, lawmakers may only consider matters brought before it by the executive branch.
In an announcement Thursday, Casa Presidencial listed some 20 laws that the executive branch has endorsed. The announcement came after Rodrigo Arias, the minister of the Presidencia, met with legislative leaders.
But Casa Presidencial briefly mentions the free trade treaty with the United States and the two tax laws, but there were no details. The proposals are expected to be for an increase in the tax rate and a surcharge on homes and properties to eliminate slums.
There was no mention of a value added tax, which the executive branch supports, although creation of such a tax in place of the existing sales tax could be within one of the tax laws.
The administration is expected to change the tax laws to put more burden on those who earn more while increasing the number of workers who pay no taxes. And also expected is what amounts to a national tax on real estate that will be used to clear slums.
In addition to the Japanese loan, the executive branch is seeking approval for loans from the World Bank to finance a project for efficiency and equality in education, a contract with the Banco Interamericano de Desarrollo to finance a program to aid competitiveness and a loan from the Banco Centroaméricano de Integración Económica to beef up the nation’s tax collections.
The immigration law, passed by the previous legislature, is due to take effect Aug. 19. The executive branch says it does not have the resources to enforce it and wants the effective date put off to December 2007.
Lawmakers will not meet Monday because it is a national holiday.