Camtic in favor of tighter tax controls for IT industry

- Tuesday, December 27, 2011

Camtic in favor of tighter tax controls for IT industry

Costa Rican IT and telecoms association Camtic has called for the tax regime to be tightened across all sectors, including IT, to help the country resolve its fiscal deficit, Camtic president Alexander Mora told BNamericas.

According to Mora, Costa Rica's fiscal deficit is 5.5% of GDP, one of the highest in Latin America.

He said that with uncertainty in global markets, Costa Rica's government cannot keep steering the country into more debt.

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The current government is proposing to reform the existing tax system, which to date has granted exemptions to many of the economy's segments, he added. Corporations with several different investments are able to have their assets considered separately, allowing to them to pay lower taxes.

"There are sectors exempted from taxation, and that isn't reasonable. We support the reform. We believe that we all have to pay taxes, and that includes the technology sector. A country's tax regime has to be in line with its economic model," Mora said.

The executive said that with 6-7% GDP growth and taxation of 17%, the country should be able to resolve its fiscal deficit in the short term.

Camtic is also proposing to automate taxation using technology that will make monitoring payments easier.