Bank Debit Taxes in Latin America : An Analysis of Recent Trends

Author/Editor:

Isaias Coelho ; Victoria J Perry ; Liam P. Ebrill

Publication Date:

May 1, 2001

Electronic Access:

Free Full Text (PDF file size is 1118 KB).Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

Six Latin American countries have levied taxes on withdrawals from bank accounts, which have been viewed as a convenient tax handle during a difficult fiscal period. The paper reviews the arguments for and against this type of taxation, describes the taxes, and surveys their revenue performance and economic impact. It concludes that the recently implemented taxes have been successful in raising revenue in the short term, but that adverse allocational impacts have likely been significant. The tax may work better in times of fiscal crisis, when financial intermediation is deep, and when the tax rate is modest.

Series:

Working Paper No. 01/67

Subject:

English

Publication Date:

May 1, 2001

ISBN/ISSN:

9781451848908/1018-5941

Stock No:

WPIEA0672001

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

33

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