In the fourth quarter of 2021, 137 countries reached a ground-breaking agreement on the reform of international aspects of Corporate Income Tax (CIT) within the OECD-coordinated Inclusive Framework (IF) on BEPS (Base Erosion and Profit Shifting). Thirty-one of these are Latin American and Caribbean (LAC) countries, and they are currently working to ensure that the voluntary … [Read more...] about Advances in the new international taxation and challenges for Latin America and the Caribbean
Fiscal policy has a key role in reducing tobacco use. According to the WHO FCTC, raising taxes has been one of the most effective measures by far. This is because an increase in taxes, directly affects the price, which in turn makes tobacco products less affordable. Pricier tobacco products have the positive effect of reducing tobacco initiation, prevalence, and consumption. … [Read more...] about Four Strategies to Make Tobacco Taxation an Effective Tool to Reduce Consumption
The economic contraction tracked by the COVID-19 pandemic has created large fiscal imbalances that will lead Latin American and Caribbean (LAC) governments to pursue fiscal consolidation policies to increase revenues and reduce expenditures. In the tax realm, questions inevitably arise as to the adequacy of tax revenues and the equity of the proposed measures. That calls for … [Read more...] about Revisiting Personalized VAT: A Tool for Fiscal Consolidation with Equity
Latin America and the Caribbean is one of the world’s most vulnerable regions to the impacts of climate change. This implies great challenges for governments and finance and planning ministries in particular. The World Meteorological Organization (WMO) reports that the impacts of weather-related events, including heatwaves or floods, have claimed more than 312,000 lives in … [Read more...] about What are the fiscal risks from extreme weather events and how can we deal with them?
Data compiled by NASA shows that 2020 was the hottest year globally on record, tied with 2016, when compared to the average temperature recorded between 1951 and 1980. Since the 1880s, the Earth's average temperature has risen more than 1°C and there is consensus that countries need to move far more aggressively to decarbonize their economies. Finance and planning ministries … [Read more...] about Three areas where finance ministries can help solve the climate crisis