Honduras: Selected Issues

IMF Staff Country Reports, July 19, 2019

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Honduras: Selected Issues

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Bibliographic details

• Published: July 19, 2019
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781513507859.002

Summary and key findings

• The paper examines revenue mobilization efforts in Honduras.
• Honduras has made considerable progress over the last years, helping to stabilize its fiscal position.
• Although tax revenue collection ratios in Honduras are high, the statutory rates are aligned with regional peers.
• A formal benchmarking exercise supports the evidence pointing to Honduras’s relatively good collection performance.
• The benchmarking exercise suggests that the current revenue envelope is close to its frontier.

Analysis of revenue performance and benchmarking

• Tax collection ratios in Honduras are generally higher compared to peers.
• Statutory tax rates are similar to those of regional peers.
• The formal benchmarking exercise provides evidence that Honduras’s collection performance is relatively strong and that room to increase revenue through higher statutory rates may be limited because the revenue envelope is close to its frontier.

Policy priorities and recommendations

• The authorities’ future revenue mobilization strategy should prioritize reforms aiming at increasing efficiency and compliance.
• The cost-benefit assessment of existing tax exemptions in terms of their policy objectives may offer guiding principles to prioritize reforms going forward.
• Rationalizing large tax expenditures could contribute to sustaining revenue mobilization efforts.
• Sustaining revenue mobilization efforts will be instrumental to:
  • maintaining a sound fiscal position,
  • reducing the infrastructure gap,
  • increasing social spending.

Publication and metadata

• Publication title: Honduras: Selected Issues
• Publication date: July 19, 2019
• Pages: 14
• Volume: 2019
• Issue: 237
• Series: Country Report No. 2019/237
• DOI: https://doi.org/10.5089/9781513507859.002
• Stock No: 1HNDEA2019002
• ISBN: 9781513507859
• ISSN: 1934-7685

Subjects and keywords

• Subject: Commodities, Electricity, Exchange rate flexibility, Exports, Fiscal policy, Foreign exchange, International trade, Revenue administration, Revenue mobilization
• Keywords: Asia and Pacific, CAPDR, collection ratio, cost, cost-recovery tariff, CR, distribution loss, Electricity, Exchange rate flexibility, export, Exports, generation company, ISCR, reform package, Revenue mobilization, revenue mobilization effort, sector reform, South America, tax collection collection ratio

International Monetary Fund. Honduras: Selected Issues (IMF Staff Country Reports 2019, 237).

Content in this bundle

• Honduras: Selected Issues; IMF Country Report No. 19/237; June 21, 2019
  • Honduras: Selected Issues; IMF Country Report No. 19/237; June 21, 2019 (Markdown version)
  • Honduras: Selected Issues; IMF Country Report No. 19/237; June 21, 2019 (PDF)