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Costa Rica's Chinchilla takes steps to curb deficit

Thursday, April 19, 2012

Costa Rican president Laura Chinchilla announced a new set of measures to contain the country's growing fiscal deficit, after a draft tax reform bill was thrown out by a high court a week ago.

Chinchilla said her government plans to create an electronic system to better collect sales taxes, eliminate tax exemptions on some luxury products and privatize some state property.

If all these measures are put into place the government will raise an additional 0.8 percent of gross domestic product in taxes, Chinchilla said.

Source: Reuters