LatinNews Daily - 05 June 2026

*Costa Rica’s finance ministry has ruled out increasing taxes or introducing any new taxes in response to recommendations from the International Monetary Fund (IMF) in its Article IV consultation report published on 1 June, which advised the government to carry out a tax reform to put public finances on a more sustainable footing. “It is not true that the government is planning new taxes or to increase current ones,” the deputy finance minister, Víctor Carvajal, said on 4 June. “The Costa Rican economy is solid and public finances are stable,” he added. Carvajal’s comments came a day after the finance minister, former president Rodrigo Chaves (2022-2026), said he would shortly present a “fiscal plan” for the short, medium and long term to increase revenue in response to the IMF report, which recommended a tax reform in areas such as corporate income tax and wages and applying the 13% value-added tax (VAT) to basic food items. Carvajal said the “fiscal plan” would generate revenue but not raise taxes, without going into detail.

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