Tax on Gasoline Appealed Before Constitutional Court
Jorge Romero, Director del Instituto de Investigaciones Jurídicas de la Universidad de Costa Rica (UCR) made an unusual request before the Constitutional Court (Sala V) by filing a "recurso amparo" - an appeal - with respect to the tax on gasoline imposed two weeks ago that saw gasoline prices jump at the pump by ¢3 colones.

The Constitutional Court accepted the filing and will render a decision in the coming week.

Costa Ricans have had to endure four consecutive price increases in gasoline prices this year, all related to the increased cost of crude oil on international markets, except one which adjusted the tax imposed on the price of gasoline.

The tax adjustment is automatic every three months and takes into account inflation.

The adjustment left a sour taste to many, as the tax on gasoline currently is ¢129 colones (us$0.27) on each litre pumped, which go directly to the government's coffers.

Romero said that it is unfair that consumers are forced to pay more tax when the increase in the price of gasoline is a direct result of the rise of the cost of crude on international markets.

The appeal is not attacking the formula that automatically sets of the increase, but the disproportionate and arbitrary setting of the tax.

Although the price of gasoline dropped last week as much as ¢25 colones per litre, the tax imposed on the sale of gasoline remains invariable, because the calculation is based on inflation and not the actual increase in cost. And inflation has not decreased in the last few years.

Now, we all must wait on the decision of the Constitutional Court.