Trends and Future Directions in Tax Policy Reform: A Latin American Perspective

Parthasarathi Shome

No 1992/043, IMF Working Papers from International Monetary Fund

Abstract: Tax reform in Latin America during the 1980s emphasized broad-based, low-rate consumption taxes over steeply progressive income and property taxes, primarily to simplify the tax structure and facilitate tax administration. While tax reform need not necessarily raise tax-to-GDP ratios, countries that undertook tax reform experienced a higher revenue gain in terms of GDP relative to those that did not. Tax reform issues during the 1990s will include a minimum income tax, alternative corporate taxes (cash flow tax, assets tax), capturing difficult tax bases (financial intermediation, property), environment taxes, extending withholding as a taxing mechanism, and tax harmonization.

Keywords: WP; property tax; personal income; tax rate; double taxation; import duty; progressive tax; cash flow; VAT revenue base; income tax tax revenue; revenue dependence; rates pari passu; uniform VAT rate; flat rate; personal income income tax; Corporate income tax; Income tax systems; Income and capital gains taxes; Personal income tax; Value-added tax; Global; North America (search for similar items in EconPapers)
Pages: 34
Date: 1992-06-01
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Citations: View citations in EconPapers (14)

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