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Costa Rica plan to end tax breaks worries investors

Tuesday, October 11, 2011

Costa Rican plans for a levy on industries operating in free trade zones could hurt economic development, foreign investors said.

Lawmakers want to expand the country's tax base and rein in the national debt, but a plan to extract taxes from companies that operate in free trade zones has some investors worried.

"A regulation like this one throws a curve," said William Ernest, general manager of Chicago-based cable and fiber optics maker Panduit, who said he is waiting for the tax debate to end before deciding whether to locate a $2 million software development center in Costa Rica or Romania.

Original source: Reuters