Costa Rica Floats Higher Tax on Everyday Food Staples

Costa Rica is considering a significant increase in sales tax on essential food items, potentially raising it from the current 1% to the standard 13%. This move has stirred heated political debate about how the country funds its services and who bears the burden. Finance Minister Rodrigo Chaves is leading the discussion, highlighting the government's struggle to balance the budget and fund essential services. The proposal underscores the broader fiscal challenges facing many countries and the difficult choices policymakers must make between tax increases and service cuts.