The Social Protection Board (JPS) of Costa Rica has discussed the new tax that would subject lottery prizes to a 25% income tax. The local regulator said that they are studying how it would affect legal gambling in the country.
Marilyn Solano, General Manager of the JPS, told the local press that they’re analyzing all the possible scenarios that would arise if this new tax comes into force.
“We are aware that the situation in the country is complicated and difficult, we understand it. We know that the Government needs more resources. However, from our management, and at the request of the Board of Directors, we’ve been evaluating the economic impact and the impact in general that this tax could have in the increase of illegal gambling,” said Solano, according to El Monumental.
Additionally, the general manager said that they understand the current situation that the Latin American country is facing, but that they are ‘assessing the scenarios that could affect the institution’.
The project from President Carlos Alvarado aims to generate around 0.12% of the GDP through the lottery tax, or about $66.7m a year.
The measure was approved in a multi-sector dialogue table last week, along with 57 other agreements to reactivate the economy, create more jobs, increase income and reduce public spending. This week, the government plans to introduce the project to the congress, who will decide if it comes into force.
