In July 2021, I posted the summary of the same kind of book, in that year with data from 2018. If you want to read the previous post this is the link, so you can compare the changes http://thepeopleteacher.blogspot.com/2021/07/revenue-statistics-in-latin-america-2020.html. This post is a summary of the book with the incomplete title above published in 2023 at https://www.oeilibrary.org/sites/a764068en/1/2/1/index.htmitemId=/content/publication/a7640683-en&_csp_=ceb60a870163d79dfecde650d331aad6&itemIGO=oecd&itemContentType=book
Revenue Statistics in Latin America 2023 is a joint publication by the Organisation for Economic Co-operation and Development (OECD), the U.N. Economic Commission for Latin Amrica (ECLAC), the Inter-American Center for Tax Administration (CIAT) and the Inter-American Development Bank (IDB). It presents detailed, internationally comparable data on tax revenues for 27 Latin American and Caribbean economies, four of which are OECD members. The book is based on the well-established methodology of the OECD Revenue Statistics database, which is essential reference source for OECD member countries. A recovery in economic activity after the initial shock of the COVID-19 pandemic, higher commodity prices and the end of temporary tax reliefs supported a strong rebound in tax revenues across the Latin America (L.A.) in 2021. The average tax-to-GDP ratio in the L.A. region was 21.7%. In comparison, the average tax-to-GDP ratio across the OECD increased by 0.6% in 2021 to reach 34.1%. Txa-to-GDP ratios ranged from 12.7% in Panama to 33.5% in Brazil in 2021. 18 countries recorded increases in their tax-to-ratio between 2020 and 2021, and 8 countries recorded decreases. The largest increase in 2021 was observed in Belize, whose tax-to-GDP ration rose by 5% due to an increase from taxes in goods and services caused by a strong rebound in tourism. The second and third largest increases were observed in Chile 2.8% and Peru 2.7%. In 2021, taxes on goods and services generated half of total tax revenues in L.A., compared with less than a third in the OECD. Fiscal policy has an important role to playing catalysing inclusive economic growth in L.A.. In the long term, higher levels of revenue will be crucial to finance investments and address demands from citizens across the region to improve equity ia the provision of public goods of quality, and to implement more comprehensive social protection systems. The Bahamas was the only country where tax revenues and GDP both declined in nominal terms between 2020 and 2021. Brazil saw the fourth-largest increase in tax revenues, which rose by 2.4% in 2021. Revenues from corporate income tax and taxes on goods and services were the main drivers of this increase. Brazil's tax revenues were also boosted by higher commodity prices. Tax-to-GDP ratios are influenced by a range of economic and structural factors. Argentina, Brazil and Uruguay show similar similar tax-to-GDP ratios to OECD countries. Empirical analysis suggest that stronger tax collection, accompanied by stronger institutions, education and skills, and economic diversification, allowed many OECD countries to evade the middle-income trap, in contrast to countries in L.A. Taxes on goods and services were the main source of revenue for all L.A. countries except Cuba, Mexico, Guyana, Panama in 2021. For those countries, revenue from taxes on income and profits accounted for the largest share. VAT rates range from 22% in Uruguay to 7% in Panama, and they are on average 14.8% in L.A. Brazil operates a multiple-rate system with tax levied at different rates for each state. Below the ranking with the highest tax-to-GDP ratio to the lowest. We can see the Brazil has the highest tax-to-GDP ratio in the Americas.
Tax-to-GDP ratio 2021 in PanAmerican countries Rest of the World
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