HTP Tax Gap Map: Costa Rica | Campaign for Tobacco-Free Kids
sign up

< Back to Heated Tobacco Products Tax Gap Map

Tax Gap of Heated Tobacco Products in Costa Rica

For heated tobacco products, the tax was established by Law No. 10066 and became effective on January 20th, 2022. It includes an ad valorem tax of 20%, based on the manufacturer price. As a result, the tax burden is much smaller for heated tobacco than for cigarettes.

Application of an excise tax for most tobacco products was established in April 2012. For cigarettes, the tax system includes a specific excise tax, several ad valorem taxes, and a minimum specific tax. Specific excises are increased every year based on the Consumer Price Index (CPI) published by the National Institute of Statistics and Census (INEC).

As of April 1st, 2023, the specific tax for cigarettes was CRC 24.180 per 1000 cigarettes. Cigarettes are also subject to the Selective Consumption Tax (SCT) at a rate of 95% (Law on SCT No 4961), although, the tax base for the SCT is a very small portion of the price. Costa Rica also imposes a 2.5% tax (referred to as INDER) on domestic and imported tobacco products aimed at covering technical education and other needs of rural development (Law No 5792). The tax base for these ad valorem taxes or sales taxes is the retail sale price exclusive of the specific tax. The minimum excise tax for cigarettes is calculated based on the “most sold brand” of cigarettes, established annually by the General Tax Office. As of May 1st, 2023, the minimum excise tax has been CRC 490.2654 per pack of 20 cigarettes (Resolution DGT-R-19-2021, published in the Official Gazette).


Last updated Sept. 1, 2023