Tax Administration Reforms in the Caribbean: Challenges, Achievements, and Next Steps
Electronic Access:
Free Download. Use the free Adobe Acrobat Reader to view this PDF file
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. 2017/088
Subject:
Auditing Consumption taxes Income and capital gains taxes Public financial management (PFM) Revenue administration Tax administration core functions Taxes Value-added tax
English
Publication Date:
April 4, 2017
ISBN/ISSN:
9781475592610/1018-5941
Stock No:
WPIEA2017088
Pages:
46
Please address any questions about this title to publications@imf.org