After a few false starts, the Treasury in Costa Rica finally issued an amended list of foodstuffs and educational products exempt from the 13 percent sales tax (or IVA).

An Executive decree issued days earlier had placed several foodstuffs on a list of items to be taxed, something that critics see as a crude and vindictive reaction to the vanishing of the Fiscal Reform plan.

Representatives from industry associations engaged in the agricultural, food and beverage industries voiced their objections to what they considered unfair taxation of certain products that are consumed by low-income households.

The amendments make all types of bread made with wheat flour, milk and grains packed in sealed plastic bags tax-free. Canned tuna, cold cuts and sausages, as well as cheeses wrapped in sealed plastic are also exempt, but not cheese-in-a-can, or cheese that can be spread -such as cream cheese.

Meats that are sold seasoned, breaded or cooked are no longer exempt from the sales tax. Fine cuts such as sirloin, t-bone, and Delmonico are not exempt. Please note that in the case of cold cuts and meats packed in aluminum cans or jars, such as Vienna sausages, sales tax will be applied.

All oils and shortenings, with the exception of olive oil, are exempt.

Most fresh produce will be exempt from sales tax, even if it is wrapped in plastic.

Parboiled, instant, and seasoned rice are subject to sales tax.

Even though canned tuna is exempt, all other types of canned seafood -like sardines- are subject to sales tax.

Coffee is exempt, save for decaf and instant versions.

New Treasury Minister Edgar Ayales, who recently assumed the post in the wake of a taxation scandal that forced former Minister Herrero to resign, indicated that the amendments to the final list accurately reflect the products consumed by the lower and middle classes in Costa Rica.

The list and its amendments were published in the digital version of La Gaceta earlier today, but they can be also be downloaded from the Treasury’s website as Microsoft Word .doc files.