Latin America and the Caribbean (LAC) face a structural challenge of low economic growth, which threatens the region’s long-term development prospects. The demographic dividend that supported growth over recent decades is fading, and now more than ever, the region must boost productivity and capital investment to sustain economic growth (see Figure 1). As a result, … [Read more...] about How to Make Tax Policy More Business-Friendly and Unlock the Investment Potential in Latin America and the Caribbean
How Targeting Enables Energy Subsidy Reforms
Better information can help Latin America and the Caribbean tackle energy subsidies and make the energy sector stronger. Many Latin American and Caribbean governments use energy subsidies as part of their anti-poverty efforts. As countries began tightening budgets and reducing debt post-pandemic, these subsidies have come under scrutiny. They are not only expensive but … [Read more...] about How Targeting Enables Energy Subsidy Reforms
Three Innovations of Brazil’s Value Added Tax Reform
One of the defining features of Brazil’s tax system is the complexity of its indirect taxes. Notably, the system is marked by fragmented tax bases, the cumulative taxation at each stage of the production process (known as the cascading effect), and the administrative challenges posed by the jurisdiction to tax consumption of three levels of government— the Federal Union, 27 … [Read more...] about Three Innovations of Brazil’s Value Added Tax Reform
Four Steps to Make the Use of Reference Prices a Game-Changer in Public Procurement
Every year, governments spend billions through public procurement to keep the government running and deliver services that citizens rely on. Yet managing this spending well isn’t just about signing more contracts; it’s about making every dollar count. And that starts with taking advantage with an often-overlooked tool: the reference price. These prices provide a technical … [Read more...] about Four Steps to Make the Use of Reference Prices a Game-Changer in Public Procurement
Boosting Investor Confidence Through Tax Certainty in Latin America and the Caribbean
Tax certainty—the predictability and stability of tax rules—is a critical factor in attracting foreign direct investment (FDI), as it shapes investors’ expectations for returns and long-term engagement. This is underscored by a recent ECLAC report on FDI in Latin America and the Caribbean (LAC), as well as 2024 PwC Pulse Survey, where 61% of tax leaders identified complexity or … [Read more...] about Boosting Investor Confidence Through Tax Certainty in Latin America and the Caribbean