{
  "title": "Tax Expenditures in Uruguay",
  "publication": "Selected Issues Papers, November 4, 2025",
  "sourceUrl": "https://www.imf.org/en/publications/selected-issues-papers/issues/2025/11/03/tax-expenditures-in-uruguay-571578",
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  "summary": "With around 180 active tax expenditures and an estimated revenue foregone equivalent to about 6 percent of GDP in 2021, the third highest in Latin America, Uruguay offers a diverse array of tax breaks.",
  "sections": [
    {
      "heading": "Summary and key findings",
      "content": "- With around 180 active tax expenditures and an estimated revenue foregone equivalent to about 6 percent of GDP in 2021, Uruguay has the third highest tax expenditure burden in Latin America.\n- The paper investigates the composition and trends of tax expenditures in Uruguay and benchmarks results from a cross-country perspective.\n- Many incentives have endured for decades; previous literature suggests a detailed reevaluation of their costs and benefits would be beneficial.\n- Macroeconomic simulations suggest that a relatively modest tax reform reducing tax expenditures could create additional space for productive public expenditure and enhance long-term growth."
    },
    {
      "heading": "Composition and trends",
      "content": "- Number of active tax expenditures: around 180.\n- Estimated revenue foregone: about 6 percent of GDP in 2021.\n- Geographic and topical coverage (as described in subject/keywords): Expenditure, International tax issues, Public financial management (PFM), Revenue administration, Tax expenditures, Tax incentives, Taxes.\n- Benchmarks: Results are compared from a cross-country perspective (specific comparative figures are not provided on this page)."
    },
    {
      "heading": "Policy implications and simulations",
      "content": "- Recommendation from literature: conduct a detailed reevaluation of long-standing tax incentives’ costs and benefits.\n- Simulation result: a relatively modest tax reform reducing tax expenditures could:\n  - create additional space for productive public expenditure; and\n  - enhance long-term growth."
    },
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      "content": "- Authors: Dirk V Muir, Hector Perez-Saiz\n- Publication date: November 4, 2025\n- Series: Selected Issues Paper No. 2025/143\n- Pages: 23\n- Volume: 2025\n- Issue: 143\n- DOI: https://doi.org/10.5089/9798229029964.018\n- ISBN: 9798229029964\n- ISSN: 2958-7875\n- Stock No: SIPEA2025143\n- Subject tags and keywords include: Expenditure; International tax issues; Public financial management (PFM); Revenue administration; Tax expenditures; Tax incentives; Taxes; Caribbean; Central America; cost-benefit analysis; Global; IMF country; IMF staff; International tax issues; issues paper; public investment; South America; Subsidies; tax expenditure; tax expenditures; Tax incentives; Uruguay\n\nSource: Tax Expenditures in Uruguay, Selected Issues Papers (2025), Dirk V Muir and Hector Perez-Saiz.\n\n---\n\n Content in this bundle\n\n- Tax Expenditures in Uruguay; IMF Selected Issues Paper No. 2025/143; October 6, 2025\n  - Tax Expenditures in Uruguay; IMF Selected Issues Paper No. 2025/143; October 6, 2025 (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Tax Expenditures in Uruguay; IMF Selected Issues Paper No. 2025/143; October 6, 2025 (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/selected-issues-papers/issues/2025/11/03/tax-expenditures-in-uruguay-571578"
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    "Authors: Dirk V Muir, Hector Perez-Saiz",
    "Published: November 4, 2025",
    "Series: Selected Issues Papers",
    "DOI: https://doi.org/10.5089/9798229029964.018",
    "With around 180 active tax expenditures and an estimated revenue foregone equivalent to about 6 percent of GDP in 2021, Uruguay has the third highest tax expenditure burden in Latin America.",
    "The paper investigates the composition and trends of tax expenditures in Uruguay and benchmarks results from a cross-country perspective.",
    "Many incentives have endured for decades; previous literature suggests a detailed reevaluation of their costs and benefits would be beneficial.",
    "Macroeconomic simulations suggest that a relatively modest tax reform reducing tax expenditures could create additional space for productive public expenditure and enhance long-term growth.",
    "Number of active tax expenditures: around 180.",
    "Estimated revenue foregone: about 6 percent of GDP in 2021.",
    "Geographic and topical coverage (as described in subject/keywords): Expenditure, International tax issues, Public financial management (PFM), Revenue administration, Tax expenditures, Tax incentives, Taxes.",
    "Benchmarks: Results are compared from a cross-country perspective (specific comparative figures are not provided on this page).",
    "Recommendation from literature: conduct a detailed reevaluation of long-standing tax incentives’ costs and benefits.",
    "Simulation result: a relatively modest tax reform reducing tax expenditures could:",
    "Authors: Dirk V Muir, Hector Perez-Saiz",
    "Publication date: November 4, 2025",
    "Series: Selected Issues Paper No. 2025/143",
    "Pages: 23",
    "Volume: 2025",
    "Issue: 143",
    "DOI: https://doi.org/10.5089/9798229029964.018",
    "ISBN: 9798229029964",
    "ISSN: 2958-7875",
    "Stock No: SIPEA2025143",
    "Subject tags and keywords include: Expenditure; International tax issues; Public financial management (PFM); Revenue administration; Tax expenditures; Tax incentives; Taxes; Caribbean; Central America; cost-benefit analysis; Global; IMF country; IMF staff; International tax issues; issues paper; public investment; South America; Subsidies; tax expenditure; tax expenditures; Tax incentives; Uruguay",
    "**Tax Expenditures in Uruguay; IMF Selected Issues Paper No. 2025/143; October 6, 2025**"
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