Chile: Selected Issues
IMF Staff Country Reports, January 20, 2023
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- Chile: Selected Issues
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Bibliographic details
- Published: January 20, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400231643.002
Overview
- Focus: Chile’s tax reform scenarios in international perspective.
- Purpose: Benchmarks estimated revenue gains of the tax reform proposal and discusses different fiscal consolidation scenarios.
- Context: While economic and social outcomes achieved by Chile have been impressive, important social challenges lie ahead.
Tax reform benchmarking and revenue estimates
- Presents a benchmark analysis of the estimated revenue yields of the tax reform proposal against similar domestic revenue mobilization episodes in OECD countries.
- Provides a very brief overview of the tax reform proposal followed by comparative revenue-yield benchmarking.
- Emphasizes that the tax reform is needed to finance social spending and meet the authorities’ fiscal consolidation plan.
Fiscal consolidation scenarios
- Discusses different fiscal consolidation scenarios in the medium term.
- States that the authorities are firmly committed to their medium-term fiscal consolidation plan.
- Considers trade-offs between revenue increases and fiscal consolidation objectives.
Stylized facts of Chile’s tax system (compared with OECD)
- Presents stylized facts of the tax system in Chile compared with The Organization for Economic Cooperation and Development (OECD) countries.
- Uses international comparisons to contextualize the proposed revenue measures.
Growth and distributional implications
- Highlights that the increase in taxes will have implications for growth.
- Notes that the effect on growth depends on the final composition of the tax and spending reforms.
Subject areas and keywords emphasized in the paper
- Subjects: Carbon tax, Climate policy, Environment, Expenditure, Greenhouse gas emissions, International organization, Monetary policy, Pension spending, Taxes.
- Keywords: abnormal returns, AFP investment portfolio, capital market depth, Carbon tax, Caribbean, Climate policy, climate strategy, Global, green tax, Greenhouse gas emissions, IMF staff calculation, NDC goal, Pension spending, revenue scenario, staff team of the International Monetary Fund, Western Hemisphere, withdrawal request.
Source: Chile: Selected Issues (https://www.imf.org/en/publications/cr/issues/2023/01/20/chile-selected-issues-528418).
Content in this bundle
- Chile: Selected Issues; IMF Country Report No. 23/37; December 16, 2022