Tax Administration Reforms in the Caribbean : Challenges, Achievements, and Next Steps

Author/Editor:

Stephane Schlotterbeck

Publication Date:

April 4, 2017

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Over the past decade, governments in the Caribbean region have introduced the value-added tax (VAT) to modernize their tax system, rapidly mobilize revenue and reduce budget deficits. This paper analyzes VAT performance in the region and concludes that while it has boosted revenues, the VAT has not reached its potential. Intended as a broad-based tax with limited exemptions, a single rate and zero-rating confined to exports, the VAT’s design often lacks these characteristics. The paper also finds that although tax administration reforms can boost revenues, countries have just started to address organizational inefficiencies, data integrity issues, and operational ineffectiveness. These reforms need to intensify in order to have a more significant impact on compliance and revenue.

Series:

Working Paper No. 17/88

Subject:

English

Publication Date:

April 4, 2017

ISBN/ISSN:

9781475592610/1018-5941

Stock No:

WPIEA2017088

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

46

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