Income tax, VAT, exemptions, and public debt: The IMF and Rodrigo Chaves' 2023 fiscal plan show common ground

In May 2023, Costa Rica's then-President Rodrigo Chaves Robles, alongside his Finance Minister Nogui Acosta, unveiled a fiscal prosperity program. This initiative outlined significant proposed changes aimed at bolstering the nation's financial health and structure.

The core of the program included proposed modifications to the country's income tax system, alongside adjustments to existing tax benefits. A key component also involved a push for constitutional reform specifically targeting the mechanism by which public debt emissions are approved, suggesting a desire for greater fiscal control and transparency.

Notably, the article points out a convergence between the proposals put forth by Chaves' administration and recommendations previously made by the International Monetary Fund (IMF). This alignment suggests a shared perspective on the fiscal challenges facing Costa Rica and potential pathways toward economic stability and growth.