Monday 07 July 2008, San José, Costa Rica

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Domestic Workers Push For Shorter Work Week, Better Working Conditions
Legislators In Agreement To Reduce Tax On Diesel As Long As It Doesn't Affect Gasoline
500.000 in San José and Cartago Without Water For Four Days
Country Won't Run Short of Milk, Dos Pinos Head Assures
Truck Falls In Ditch, Driver Dragged Off By Raging Current

Legislators In Agreement To Reduce Tax On Diesel As Long As It Doesn't Affect Gasoline
In the face of another round of gasoline prices hikes and a possible strike by bus and taxi operators on Tuesday, legislators of the five parties are in agreement to reduce the ¢97 colones "impueto unico" (tax) on diesel fuel as long as it does not cause an increase in the price of super and regular gasoline.

The regulating authority approved the latest round of gasoline and diesel fuel prices that will go into effect on July 15, which will mean an increase of ¢60 colones on the price of gasoline and ¢88 colones on diesel.

The ¢88 colones diesel increase was to have been eliminated with the government's announcement of a subsidy to be paid to the state refinery with a transfer of ¢10 billion colones.

Legislators have yet to approve the transfer, forcing the regulator to approve the increase, saying it would be rolled back if and when legislators give the approval on the subsidy, as Recope cannot get double compensation.

However, the subsidy, if and when approved, comes at a cost which will be reflected in the price of gasoline and owners of diesel powers passenger vehicles, who will be forced to pay double the annual property tax on their vehicles.

The effect on the price of regular gasoline would be an increase in the tax of ¢152 colones and ¢140 on super, effectively increasing the present tax of ¢173.25 to ¢325.5 on each litre of regular sold at the pump from ¢165.75 to ¢306 on a litre of super.

Legislators are expected to meet with bus operators today who want to see lower fuel prices and are threatening to park their buses beginning tomorrow (Tuesday).

The bus and taxi operators are being represented by the Foro Nacional de Transporte Público and its president, Maritza Hernández, is adamant that the bus and taxi operators will carry out their threats unless their demands are met.


 
 
 

 

 

 
 

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