Tax Reform to Reduce Public Spending

In Costa Rica a new tax reform package includes an attempt to reduce state expenditures by 1% of GDP.

Tuesday, January 29, 2013

The Finance Minister Edgar Ayales, outlined to Elfinancierocr.com to the details of a new attempt to correct the deficiencies of the Costa Rican tax system, while curing the problems in public finances.

Ayales justifies the need for the approval of this tax reform, saying that "The short-term contingency measures that have alleviated the fiscal deficit have all been used up.”

The new project, to be presented to the Legislative Assembly in the second quarter of this year, aims to reduce state expenditures by 1% of gross domestic product (GDP) and increase revenue by 2%.



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