Cars Older than Seven Years Will NOT Be Allowed To Be Imported
A plan by the Ministerio de Hacienda (Revenue Ministry) to eliminate the importation of vehicles older than five or seven years was confirmed yesterday by Hacienda Minister, Federico Carrillo. The measure would come into effect June 5 - Environment Day in Costa Rica.

Carrillo said that other decrees will be announced on that day, that will include a reduction in the maximum import tax on vehicles that are environmentally friendly, like hybrid vehicles. Hybrid vehicles use electrical power backed up by a gasoline engine.

The Minister said that the decrees have been worked on by the Ministerio de Ambiente y Energía (Minae) - Energy and Environment - and are ready to be put in place.

In 2004, more than 40% of the all the vehicles imported were seven years old or more. The percentage calculated to 20.000 of the 50.000 vehicles imported during 2004.

José Carballo, president of the Cámara Costarricense Automotriz, the association that groups used auto importers and sellers, criticizes the proposed changes. Carballo says that proposed changes will have a negative effect on the used car market, though offered no details.

Carrillo, for his part, said that the plan will go ahead as schedule and he does not fear pressures from the various interest groups.