Costa Rica News – Although most of you are seeing this as a good thing if you are a vehicle owner, it might not really be that great. The price increase was only about $30 which is nothing compared to the Marchamo increase, but the consequences of being declined this increase are going to be worse. Just watch!
When it comes to Costa Rica if someone asks for something and the entity they ask says “no”, they take it personal. For example, if an employee asks for a day off and the employer says no, usually two things will happen. The first is the employee will call in sick and not show up that day anyway. The second is they will show up but purposely not do any work. Either way they are passive aggressively sticking their middle finger at “the man” that did not give them what they wanted. The same is going to happen here.
Riteve is not going to take this in stride and just say ok they said no, no big deal. The results of this are going to be the following:
1. They are going to start not passing alot of vehicles and the public is going to get mad
2. They are going to find other ways to get money from the inspections, be it through bribes, or whatever
The end result is going to be worse than if the Costa Rican government just said ok lets allow them to increase their prices $30. What the Costa Rican government should have done is allow an increase of a certain % over time for example 20% per year for 5 to 10 years which means both sides would have been happy. Jut saying no is not going to fly.
The increase request was the following a fleet vehicle would have passed from ¢ 9930 to ¢ 25,530, Taxis ¢10,714 to 27,540 and motorcycles test increase from ¢ 6541 to ¢ 16.810.
Herrerra the Riteve spokesperson said that the government has not made any adjustments for 8 years.
Spanish partners of Riteve resorted to international arbitration, as they also feel affected by the tariff issue.
This process continues in the International Centre for Settlement of Investment Disputes (ICSID) in Washington, United States. There Riteve demanding compensation of $ 280 million.
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Although this looks like a good thing just watch over this comes and bites back.
