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Costa Rica tax plan faces delay after minister quits

Wednesday, April 4, 2012

The resignation of Costa Rica’s finance minister, Fernando Herrero, may delay a congressional vote on tax changes aimed at paring a $2 billion fiscal deficit, said Boris Segura, strategist at Nomura Securities in New York.

Herrero submitted his resignation to President Laura Chinchilla following newspaper allegations that he underpaid taxes for 12 years. In a statement last week, he denied deliberately evading taxes.

“The main issue is if his resignation is going to impede the tax reform approval,” said Segura in a phone interview from Costa Rica. “It will likely cause some further delays."

Source: Bloomberg