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Costa Rica Modifies Tax on Banana Boxes

13.4.2018

The deputies of Costa Rica approved in the first debate a project promoted by legislator Luis Vásquez and the Caribbean Commission of Congress, which seeks to redistribute in a more accurate way the tax that banana producers already pay for each box that is exported.

According to Vasquez’s explanation to the local press, the initiative aims to reform Article 36 of the Law of the National Banana Corporation (Corbana).

"What we are looking to achieve is to correct a bias in the distribution of resources. When this law was passed, most of the banana production was in the Brunca region, despite the fact that 98% of the national banana area is grown today in the Atlantic region," said the deputy.

With the change in the law, the tax is not modified, but the distribution of it, making the province of Limón the greatest beneficiary.

In 2015 the tax collected for this product was ¢ 32.2 million, of which the Federation of the Brunca Region received ¢ 24.15 million and the Federation of the Huetar Atlántica Region ¢ 8.05 million.

Following this same example, once the law comes into force, these percentages will be reversed.

"We are returning this money to the 6 municipalities and cantons that they represent in the province of Limón, and with this we will be able to strengthen the Federations of the Cantonal Agricultural Center," Vásquez added.

According to data from Corbana, in 2017 Costa Rica exported 125 million boxes of bananas, which represented close to US$ 1,000 million.

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