Global relations in taxation

The LAC Fiscal Initiative

 

 

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 www.oecd.org/tax/lacfiscal

Upcoming Events


  • 4th LAC Tax Policy Forum (3-4 July, Mexico City)

The fourth LAC (Latin American and Caribbean) Tax Policy Forum will take place on 3-4 July in Mexico City. This year's Forum builds on the dialogue launched in Panama in 2010,  continued in Colombia in 2012 and in Uruguay last year, on key tax policy issues for the region. A draft agenda and logistical information will be available soon and please contact Katherine Perkins should you require further information.

 

Latest Publications


Revenue Statistics in Latin America 1990-2012 (3rd Edition)

 

 Revenue Statistics in Latin America 2012 Book Cover

  

Tax in Latin America: Tax revenues continue to rise, but are low and varied among countries

Tax revenues in Latin American countries continue to rise but are lower as a proportion of their national incomes than in most OECD countries. The publication Revenue Statistics in Latin America 1990-2012 (third edition) shows that the average tax revenue to GDP ratio in the 18 Latin American and Caribbean countries covered by the report increased steadily from 18.9% in 2009 to 20.7% in 2012 after falling from a high point of 19.5% in 2008. 

The report shows that the tax to GDP ratio rose significantly across Latin American and the Caribbean  over the past two decades – from 13.9% of GDP in 1990 to 20.7% of GDP in 2012.  But the tax to GDP ratio is still 14 percentage points below the OECD average of 34.6%.

Click here for more details


 

 

Making Development Happen: Fiscal Policy for Development in the Dominican Republic

 ‌‌Cover page of the publication "Fiscal Policy for Development in the Dominican Republic"

  

Tax reforms must play a central role in a country’s medium- and long-term development strategy. The report analyses some of the possible tax reforms in the Dominican Republic within a regional and international context of good practices. The fiscal recommendations are made within the context of the institutional frameworks, with particular emphasis on matters of economic policy that should be considered in the reform process.

Click here to read the publication

   

Overview

 

Latin America and the Caribbean (LAC) is still for many the region with the highest inequalities in the world, presenting major problems in the area of its fiscal performance. The LAC Fiscal Initiative is an OECD programme that fosters fiscal policy dialogue in the LAC region aiming to improve its taxation and public expenditure policies to support economic growth and income redistribution.

The programme is delivered through a regional forum for policy dialogue on fiscal issues (the LAC Tax Policy Forum), where senior fiscal policy officials of LAC countries can engage in dialogue with experts from the relevant OECD Committees and other regional organisations. This dialogue is supported by the development of internationally comparable data (e.g. the Revenue Statistics in Latin America publication), capacity building workshops and analytical papers that complement fiscal policy discussions. A third line of work consists of assisting countries with the design and implementation of fiscal reform measures.

   


Other key features of the LAC Fiscal Initiative:

  • It is part of a broader OECD programme (the LAC Initiative) which fosters policy dialogue in the LAC region covering  several other areas beside fiscal issues - investment, public governance and innovation policies.
  • It is a joint project between the OECD Centre for Tax Policy and Administration (CTPA) and the Development Centre (DEV) who work in close co-operation with key regional partners in the LAC region, especially CIATECLAC and IDB.
  • It is a demand driven programme - several Ministers of Finance in the LAC region expressed interest in working with the OECD on fiscal policy issues - which meets the specific needs of LAC countries by combining regional and country by country approaches.
  • It is financed by voluntary contributions from OECD and participating countries.
 

Outcomes

1) Creation of a regional forum for fiscal policy dialogue:

  • The first meeting of the LAC Tax Policy Forum was held in Panama City (Panama) on 16-17 September 2010; it was attended by over 60 experts, including representatives of the Ministries of Finance and/or Tax Administration of 14 Latin American and Caribbean countries and several OECD countries. It focused on the role of the tax system in reducing income inequality and promoting social cohesion, and served to identify tax incentives as the new priority topic.
  • The Second meeting of the LAC Tax Policy Forum, jointly organised by CIAT, ECLAC, IDB and the OECD, and hosted by the Colombian Ministry of Finance and the National Tax and Customs Administration of Colombia (DIAN), was held in Bogotá on 12-13 July 2012.

  • The third meeting of the LAC Tax Policy Forum took place in Uruguay on 4-5 July 2013. Attended by over 60 participants, this forum focused on practical country experiences in the use of the tax system as a mechanism to reduce inequalities.
  • The fourth meeting will take place in Mexico City on 3-4 July 2014.

 

2) Tools to facilitate policy dialogue:

  • Revenue Statistics in Latin America publication: this joint publication by CIAT, ECLAC and the OECD was launched in Santiago, Chile, on 20 January 2014 at the ECLAC’s XXVI Regional Seminar on Fiscal Policy. It aims at helping fiscal policy dialogue and the assessment of alternative fiscal reforms by providing internationally comparable data on tax levels and structures for, including data at sub-national government level. The publication follows the model of the OECD Revenue Statistics database, which enables meaningful cross-country comparisons about tax levels and structures not only between LAC economies, but also, for the first time, between them and their industrialised peers.
     
    web platform to share this database and to foster virtual dialogue on fiscal issues has also been developed.

  • Capacity building workshops and Seminars: several technical workshops and seminars for LAC fiscal officials have also been delivered as a complement for tax policy discussions.

2014 Capacity building workhops that will take place in the Multilateral Tax Centre in Mexico:

  • Comprehensive tax treaties, 7—1 April [with CIAT]
  • Tax expenditure and investment, 7—11 July [with CIAT]
  • International Tax Avoidance, 29 Sept.—3 October
  • Train the Trainers: transfer pricing, 27—31 October
  • Taking advantage of the Multilateral Assistance Convention and Automatic Exchange of Information, 1—5 December

 

3) Assistance in the design and implementation of reform measures

  • On a demand driven basis, two LAC countries have been assisted in the process of reform of their fiscal rules, analysing their budgetary position taking into account the business cycle and commodities prices.
 

Strengthening the LAC Fiscal Network

The vision of the LAC Fiscal Network is to continue to provide a Forum for discussion among policymakers, complemented by technical events (e.g. on Tax Policy Modelling, Micro-simulation workshops, Fiscal Federalism, taxation of Non Residents, Corporate Income Tax policy, etc.) and analytical papers.


The Network will be further enhanced by two other publications (given that sufficient funding is secured): Taxing Wages in Latin America, and Consumption Tax Trends in Latin America, which will provide further internationally comparable tax indicators for LAC (e.g. effective tax rates on labour, capital and consumption).

 

Further information

The LAC Fiscal Initiative Flyer
 

Contact us

 

Any questions relating to the LAC Fiscal Initiative should be addressed to Katherine Perkins (E-mail: Katherine.Perkins@oecd.org)

 

Photos credits: © Engine Images - Fotolia.com
© Robert Crum - Fotolia.com
© Astock - Fotolia.com

The map is for illustrative purposes and is without prejudice to the status of or sovereignty over any territory covered by this map.

 

 

 

 

 

 

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