Costa Rica's Economic Rescue Plan to Raise VAT on Food from 5% to 19%

The Costa Rican government's Economic Rescue Law proposes eliminating the reduced 5% VAT rate and expanding the tax base, which would raise VAT on many food items from 5% to 19%. This marks a significant fiscal policy shift aimed at increasing revenue, but it faces political and social resistance. The outcome is uncertain as the bill moves through the legislature.

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