Methodology for Assessing the Evolution of Tax Expenditures and the Impact of Reforms on Components with Negative Environmental Effects in the Agricultural and Agro-Industrial Sectors

This report presents a methodological proposal for analyzing the environmental effects of tax expenditures associated with agricultural activities in Costa Rica. It discusses the conceptual framework and international experiences in evaluating tax expenditures, provides a qualitative assessment of environmentally significant tax expenditures in Costa Rica, and proposes a methodology for analyzing their impact on environmental sustainability and their contribution to the climate transition of agricultural activities.

It was prepared at the request of the Ministry of Finance of Costa Rica, with support from the Green Economy Transformation Project (GET 4.0), implemented by the German Corporation for International Cooperation (GIZ) on behalf of the Federal Ministry for the Environment, Climate Action, Nature Conservation, and Nuclear Safety (BMUKN) under the framework of the International Climate Initiative (IKI).