OECD: Tax revenues increase in Latin America and the Caribbean

OECD: Tax revenues in Latin America and the Caribbean

The Organisation for Economic Cooperation and Development (OECD) announced that tax revenues in Latin America and Caribbean countries continued to increase in 2015, based on data from the annual Revenue Statistics in Latin America and the Caribbean publication.

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The OECD release indicates that:

  • The average tax-to-GDP ratio for Latin America and the Caribbean countries reached 22.8% of GDP in 2015, up from 22.2% in 2014.
  • The average tax-to-GDP ratio across Latin America and the Caribbean countries is currently 11.4 percentage points lower than the OECD average of 34.3%. The difference between the OECD and Latin America and the Caribbean countries is mainly explained by lower tax collection on personal income taxes and social security contributions in the Latin America and the Caribbean region; however, the difference between OECD and Latin America and the Caribbean tax-to-GDP ratios in 2015 is the smallest on record.
  • “Surging” revenues from the value-added tax (VAT) and excise taxes offset a decline of 0.2 percentage points in corporate income tax revenues and explain the overall increase in the Latin America and the Caribbean average tax-to-GDP ratio in 2015. This is the first decrease in corporate income tax revenues across Latin America and the Caribbean countries since 2011. In contrast, personal income tax revenue has reached its highest level, during the period covered in the report, at 2.1% of GDP.

The Revenue Statistics in Latin America and the Caribbean publication 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, the OECD Centre for Tax Policy and Administration, and the OECD Development Centre. It covers 24 Latin American and Caribbean countries, including Cuba and Belize.

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