Costa Rica

The ruling Partido Liberación Nacional (PLN)'s tax plan remains stalled in the legislative assembly. Moreover, the constitutional court's decision to consider a filing on the unconstitutionality of the bill's 'fast track' status in late December looks poised to stall the bill further, as this prevents the second vote required before the bill becomes law. The tax plan has also been the target of public ire in recent months, as some believe it will hit low income populations hardest. Though we believe Costa Rica's fiscal accounts will remain stable in 2012, we raise concern over the ongoing lack of fiscal consolidation.

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