Restaurant owners say 2 percent bank charge on credit, debit transactions could cause problems
Representatives of the Costa Rican Restaurants Chamber (CACORE) warned this week that restaurant owners could face liquidity problems from a 2 percent charge that banks will assess on all dining payments made with credit and debit cards.
The measure was prompted in August by a Tax Administration decree and takes effect this month. According to the decree, banks will withhold 2 percent of credit and debit card payments from restaurants as an advance on income tax payments. CACORE criticized the plan during its annual congress of 225 representatives from the sector, who met this week.
Chamber executive director Alejandro Madrigal Ramírez on Tuesday said they had requested a meeting with Finance Vice Minister Fernando Rodríguez, and the two sides could begin discussions as early as next week.
Tax Administration General Director Carlos Vargas in August said the measure has two goals: To collect advanced income tax payments and to track all payments made with credit and debit cards in the country.
CACORE’s congress also held forums to discuss other challenges, including high levels of competition. According to Health Ministry records, more than 20,000 food and beverage businesses operate in Costa Rica.
Competition has led to some 1,900 layoffs in the sector this year, but congress attendees said they did not expect more firings for the rest of 2014.
Restaurant owners also complained about excessive red tape at public agencies – particularly at municipalities – and dry laws prohibiting the sale of alcohol during certain holidays.
You may be interested
Costa Rica reduces fiscal deficit more than anticipatedAFP and The Tico Times - January 22, 2019
Costa Rica closed 2018 with a fiscal deficit of 6 percent of its GDP, below the 7.2 percent that had…
This week in the Peace Corps: Jumpstarting English with Peace Corps VolunteersPeace Corps Costa Rica - January 22, 2019
JumpStart camps led by Peace Corps Volunteers (PCVs) have officially begun all throughout Costa Rica. These intensive four-week English camps provide…
The Tico Times Weekly Digest: Jan. 21, 2019.Alexander Villegas - January 21, 2019
An attack in Nicaragua, our Puerto Viejo Deep Dive and a new Sele squad. These stories and more in this…