The United Nations Economic Commission for Latin America and the Caribbean (ECLAC) has called for measures to tackle nonpayment of taxes, cautioning in a just released report that tax evasion is one of the main weaknesses of the tax systems in the region’s economies, accounting for 320 billion US dollars in 2014.

Tax revenues are the cornerstone of the basic financing of modern State, and it is therefore vital to prioritize the creation of a tax culture in which evaders are effectively punished, according to the ECLAC document, ‘Fiscal Panorama of Latin America and the Caribbean 2016’, which was launched yesterday.

The ECLAC report states that fiscal non-compliance represents 2.2 points of gross domestic product (GDP) in terms of Value Added Tax (VAT) at the regional level, and 4.1 GDP points in terms of income tax.

While ECLAC said it acknowledges the difficulties of bringing those numbers down against a backdrop of reduced economic buoyancy, it called for increased efforts to avoid a substantial loss of potential tax resources.

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