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Costa Rican legislators give green light for tax reform to cut $650 million from deficit

Friday, March 16, 2012

Costa Rica’s Congress last night gave initial approval to an overhaul of the tax system aimed at paring a fiscal deficit equal to more than 5 percent of gross domestic product.

The new system would add about $650 million annually to government revenue, according to the country's Finance Ministry.

Costa Rica’s $40 billion economy, the second-biggest in Central America, is weighed down by a fiscal deficit equivalent to about $2 billion, approximately the amount the country earns from tourism.

Source: Bloomberg