Various labor unions and social advocacy groups have resolved to voice their discontent against proposed financial reforms with a labor strike and public demonstration. The display of solidarity will take place just days before a large number of Ticos will leave for the beaches and the countryside.
The decision was formulated a week ago during an impromptu summit of labor union leaders. Beatriz Ferreto, president of the Secondary Education Teachers Association, explained to the Diario Extra newspaper that at least 20 groups representing all the national universities, public health associations and agricultural worker groups will participate in the massive demonstration. Thousands are expected to join in the public display of dissent against the proposed fiscal plan that aims to impose new taxes and increase the rates of some existing ones.
As a country that believes in providing a social safety net for its citizens, Costa Rica has some pretty steep financial obligations to meet. Ecologically sound policies, free public health care, a social security pension system, and countless subsidies are not cheap. Revenue assessments and collection has been pretty lax in the past, but now with tight budgets and a mounting deficit, legislators at the National Assembly in Cuesta de Moras are considering passing a round of fiscal reforms which will squeeze more money from business entities; a burden which will ultimately be shouldered by workers and consumers.
Costa Rica has a long history of experiencing difficulties collecting taxes and other revenues. The country has heavily depended on the unpopular value-added taxes which are easy to pass on to consumers. Other sources of revenue include exorbitant taxes levied on imported goods purchased abroad. Like in other Latin American nations, Costa Rica’s economy has shown signs of prosperity, particularly among its middle class. Consumers feel empowered, and thanks to easy credit plans and other promotions, the purchasing power of Ticos has increased. As a result, many people in Costa Rica are now thoroughly familiar with online shopping holidays such as Black Friday and Cyber Monday.
The high price tags of many retail consumer goods in Costa Rica are caused by these high import taxes. For this reason, many tech-savvy Ticos have become avid online shoppers who take advantage of lower prices abroad. This new generation of bargain hunters are often assisted by enterprises that expedite the purchasing, shipping and customs process so that shoppers can enjoy deliveries right at their doorstep. But now these shoppers are also being squeezed by a cash-strapped Ministry of Revenue that blocked the consumer’s right to an annual tax exemption on imported goods purchased on Black Friday.
Just like the workers who are planning the massive strike on December 13, online shoppers are exercising their democratic right to assemble and petition against the onerous fiscal reforms. Progressive-minded Ticos leveraged the power of online social networking to voice their displeasure with the unexpected move by the Revenue Minister. A Facebook page entitled “Yo defiendo mi derecho de exonerar” (I support my tax exemption rights) was quickly created to draft a formal petition before Sala IV, the country’s highest court overseeing constitutional affairs. Organizers and supporters met at the Best Western Irazú hotel in La Uruca on December 6 to sign the petition before it is filed in court. Several delivery services and national news organizations have “friended” the petition on Facebook.
The massive protest against fiscal reform is expected to assemble in the early hours of Tuesday, December 13, at Central Park in Downtown San José. The crowd will then march down to Cuesta de Moras, located due east about a kilometer away. Large portions of Second Avenue, Central Avenue East and several side streets are expected to be closed to vehicular access on that day.




