Tag #International Institutions

What concrete policy reforms are needed in Costa Rica to mitigate the negative impacts of Sinpe Móvil and create a more effective and equitable tax system?

Costa Rica's experience with Sinpe Móvil underscores the risk of blindly adopting international best practices without thorough local impact assessments. The country's low tax collection, coupled with a lack of integrated databases, created a perfect storm for tax evasion. Future reforms must prioritize systemic integration of tax databases and address regulatory capture by lobbying groups to prevent similar failures.