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Brazil & Southern Cone - December 2011 (ISSN 1741-4431)

Mujica set to get his way

 The lower chamber of congress approved a controversial new land tax in November which will impact large landowners. The tax was approved with the backing of just the ruling Frente Amplio (FA), which holds a wafer-thin majority. The moderate parties within the FA coalition, spearheaded by Vice-President Danilo Astori, had initially opposed the tax when Mujica first tabled it in May on the grounds that it changed the rules of the game and risked deterring investment, but Mujica persisted and eventually persuaded the cabinet to back him.

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