Red Cross would be excluded from the fiscal rule under bill

The Legislative Assembly is processing a bill that excludes the parafiscal resources financing the Benemérita Cruz Roja Costarricense (Costa Rican Red Cross) from the fiscal rule, through the addition of a new subsection to Article 6 of Law No. 9635, “Strengthening of Public Finances.” The initiative, registered under File No. 25,806 and signed by Deputy Iztarú Alfaro Guerrero, was published in Supplement No. 132 to La Gaceta No. 186 on Friday, October 2, 2026, in the Legislative Power section. The institution warns that the lack of funds could force it to close 66 of its 134 committees across the country.

The text and its scope

The single article of the bill adds subsection bb to Article 6 of Law No. 9635, which lists the exceptions to the scope of coverage of the fiscal rule title. The proposed wording declares exempt the resources coming from:

• Articles 1 and 5 of Law No. 8690, Parafiscal Contribution to Telecommunications Services.
• Subsection b) of Article 234 of Law No. 9078, Law on Land Public Road Traffic and Road Safety.
• Articles 2 and 3 of Law No. 5649, Law on Financing and Issuance of Red Cross Stamps.
• Subsection e) of Article 5 of Law No. 8114, Law on Tax Simplification and Efficiency.
• Subsection e) of Article 15 and Article 17 of Law No. 7972, tax charges on liquors, beers, and cigarettes.
• Subsection e) of Article 8 of Law No. 8718, distribution of national lottery revenues.
• Subsection h) of Article 15 of Law No. 8461, Law Regulating Port Activity on the Pacific Coast.

All these resources are directed toward the financing of the Benemérita Cruz Roja Costarricense. The project takes effect upon its publication and has completed the review process for formal, material, and orthotypographic errors in the Department of Parliamentary Services.

The financial crisis of the Benemérita

The statement of motives recalls that the Costa Rican Red Cross was declared a meritorious institution of the homeland in 1989, for its humanitarian, relief, and rescue work for over a century. According to the text, the financial situation has already caused the closure of the San Pablo and San Rafael de Heredia headquarters and the cessation of operations of the committees in Juan Viñas de Cartago and San Mateo de Alajuela.

The document indicates that 66 more committees operating throughout the national territory are at risk of closure, as they lack the financial support to maintain their operations. It adds that several deputies expressed concern because the organization has not yet received ₡1.5 billion that remained frozen and whose disbursement was committed by the Government.

Services at risk

The initiative lists the tasks that depend on the institution: first response in traffic accidents, accompanying firefighters in fires, transporting patients from rural areas to medical centers in the Greater Metropolitan Area, rescue in aquatic, urban, and mountain environments, searching for missing persons, and restoring contact between families after disasters abroad.

The text quotes Jim Batres, the institution’s operational deputy manager, who indicated that some of the most complex operations occur in indigenous territories, where access roads are scarce. In 2025, nearly 15,500 interventions were carried out in those locations, with an average duration of 12 hours per incident.

The framework of Law 9635

Law No. 9635 came into effect in 2018 and transformed the sales tax into a broad-based VAT, with a general rate of 13%, reduced rates of 4% for private health services and airline tickets, and 1% for basic basket products. Additionally, it introduced strict limits on the growth of public sector current expenditure based on the country’s economic growth and the public debt ratio.

The statement of motives argues that the law itself provided an exit from the rule in its article 6, but it was designed for public institutions, a condition that the venerable organization does not share, although it does receive some of the public resources that make up its budget. The stated objective is for the institution to receive the funds that belong to it by law.

Impact

If approved, the measure would exempt the parafiscal items that support the Costa Rican Red Cross from expenditure growth limits, which would define the operational continuity of dozens of committees and the emergency services they provide in rural and indigenous areas. The project is now open for discussion by the deputies.

Source: La Gaceta — Official Gazette, Supplement No. 132 to La Gaceta No. 186, Friday, October 2, 2026, Legislative Power (Projects), official reference: IN202601130028.