February 20, 2024

Tax revenues in Latin America and the Caribbean below the OECD average

From Chartered Accountants Ireland

Tax revenues in Latin America and the Caribbean (LAC) dipped in 2016, falling further behind the average OECD country levels. That’s according to a recent report which the OECD contributed to on tax statistics in Latin America and the Caribbean.  The report goes on the say that recovery is likely in subsequent years.

The 2016 decrease reflects the overall economic environment in the LAC region, where GDP growth slowed between 2012 and 2016 according to the report.  Declining commodity prices partly drove this downturn and remain a key determinant of revenue trends in LAC countries. The decline in tax revenue as a percentage of GDP is expected to reverse in subsequent years due to a recovery in commodity prices and an improving economic climate, with GDP growth in LAC forecast to be between 2 percent and 2.5 percent in 2018.

Launched during the 30th Regional Seminar on Fiscal Policy in Santiago, the report covers 25 LAC countries and includes Guyana for the first time.  It is produced jointly by the Inter-American Centre of Tax Administrations, the Economic Commission for Latin America and the Caribbean, the Inter-American Development Bank and the OECD.

For more on this story go to: https://www.charteredaccountants.ie/News/tax-revenues-in-latin-america-and-the-caribbean-below-the-oecd-average

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