Sunday 24 August
2008, San José, Costa Rica
No New Taxes, Arias And
His Minister Conclude
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No New Taxes, Arias And
His Ministers Conclude
On
Saturday, Costa Rican
president and his
ministers took part a
special session (encerrona
in Spanish) that lasted
eight hours, to define
the path of the
remaining term of the
current administration.
At the end of the
session, Arias said he
resigned himself to
complete his temr
without new tax laws
that would have
guaranteed the
administration with
money for its projects.
The president also
acknowledged his
government's failure for
"not having done enough"
to eradicate slums, the
biggest challenge,
according to his own
words, which will be
faced by the new
ministra de Vivienda
(housing minister),
Clara Zomer.
Arias said that his
priority for the last 20
months of administration
is in the field of
social programs, for
which the government has
destined 45% of the 2009
budget.
Among other things,
there will be an
increase in funding in
the Avancemos program
that provides
scholarships, increasing
the amount from ˘36
billion to ˘55 billion
colones; an increase
investment in the
Cen-Cinai and in the
field of agriculture;
will give another boost
to non-contributory
pensions and raise wages
to offset inflation.
Those were some of the
conclusions and pledges
raised by the President
yesterday, in a meeting
that included not only
his ministers, but also
executive presidents of
public institutions. The
meeting was held in
Montecillos de Alajuela.
"We are not going to
fight for a
comprehensive tax
reform, Don Abel Pacheco
(his predecessor) spent
4 years fighting for
this, we will not waste
time on that", said
Arias.
However, he said that he
will insist that
deputies approve at
least the solidarity tax
on luxury homes with
value in excess of ˘100
million colones which
tax revenue will be used
for the eradication of
slums.
"The rich do not need
government assistance,
this is about helping
the poor," added Arias.
Since there will be no
tax reform, money to
finance social programs
will, in part, come from
the financial surplus
the government manager
over the last 12 months,
explained the ministro
de Hacienda (Revenue
minister), Guillermo
Zuniga.
During the meeting
discussed were the
adverse economic
prospects expected for
this year, but also the
political difficulties
to approve projects
that, at earlier were
priority of the
administration, like the
tax reform. |
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The Arias brothers -
Rodrigo (right), ministor de la Presidencia and Oscar
(left), the country's president - during a meeting
of his ministers to define the path of the current
administration. |
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