Costa Rica Draft Tax Law Rejected By Court

SAN JOSE, Costa Rica, April 10 (Reuters) – Costa Rica’s highest court has rejected an ambitious fiscal reform bill proposed by President Laura Chinchilla to bring the country’s ballooning budget deficit under control.

A panel of seven judges in the Supreme Court of Justice unanimously ruled that the manner in which the fiscal bill passed through congress was unconstitutional, the court said in a statement on Tuesday.

The ruling followed a challenge to the draft legislation by an opposition lawmaker.

The court said that amendments made to the bill to get it through the national assembly amounted to short cuts that were in breach of the constitution. The ruling means the plan will likely be sent back to congress, where Chinchilla’s centrist National Liberation Party lacks a majority.

Among other measures, the proposed law aims to raise tax revenue by the equivalent of 1.5 percentage points of gross

Copyright © 2012, Reuters

Related posts

Top