Plan To Eliminate Tax On
Diesel Fuel Loses
Support
A plan to eliminate
taxes on diesel fuel for
buses, taxis and trains
lost the support of the
majority of legislators
of the commission
studying the proposal.
The change of heart by
legislators followed the
comments of the
Regulador General,
Fernando Herrero, who
warned that the
elimination of taxes on
the fuel would not imply
a considerable reduction
in the fares paid by
users of mass
transportation.
"The plan lost its
meaning", said Gilberto
Jerez, head of the
commission.
Jerez added that the
tendency of the majority
of the legislators that
make up the commission
are in agreement not to
subsidize the cost of
diesel fuel.
The commission studying
the plan has a deadline
of November 3rd to
present its findings
before the full
legislature.
According to Jerez, the
subsidy would remove the
¢100.5 colones tax on
the current price of
¢650 colones per litre
resulting in a reduction
of 7% in bus fares, 5%
in taxi fares and 3% for
train fares.
Jerez added that the
commission members are
now turning from
reducing public
transportation fares to
focus on reducing
electrical rates.
A proposal is taking
force to eliminate taxes
on diesel and bunker
fuel used by the
Instituto Costarricense
de Electricidad (ICE) to
generate electricity.
Jerez said that it quite
feasible to reach an
agreement on this
matter.
"We have reached the
conclusion that the
majority of the
commission members are
prepared to redirect
their focus and reach a
consensus on this type
of exoneration", said
legislator Andrea
Morales.
Pedro Pablo Quirós,
president of ICE, said
last week in a La Nación
interview, that the
elimination of the tax
on fuel used by the
institution could mean a
reduction of 6% on
electrical rates.
The proposal also has
the support of the
ministro de Hacienda,
Guillermo Zúñiga, who
affirms that he is
willing to look at the
possibility as long as
it doesn't have a
negative fiscal impact.
This is the second time
the government has
failed to eliminate the
tax on diesel fuel, not
obtaining the required
support of legislators.
The first plan proposed
several months ago was
to transfer ¢10 billion
colones to Recope, the
state refinery, from the
treasury to reduce the
price of diesel fuel at
the pumps. That proposal
met resistance by
legislators and finally
died before making it to
a vote. |
