02761cas a2200325 a 4500 AALejournalIMF022304 230101c9999 xx r poo 0 0eng d 5.00 USD 9781616358297 1018-5941 BD-DhAAL BD-DhAAL Acosta-Ormaechea, Santiago. Tax Policy for Inclusive Growth in Latin America and the Caribbean / Santiago Acosta-Ormaechea, Samuel Pienknagura, Carlo Pizzinelli. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (40 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This study provides an overview of tax structures in LAC before the COVID-19 pandemic, compares it to OECD countries, and provides recommendations for growth-friendly and inclusive tax policy reforms. LAC countries collect significantly lower tax revenue relative to OECD countries and have tax structures that rely excessively on corporate-income taxes (CIT) while personal-income taxes (PIT) remain largely underutilized. LAC countries could strengthen their PIT to mobilize revenue and improve progressivity by addressing critical design flaws. Possible adverse growth effects could be mitigated by providing incentives to labor force participation and formalization (e.g., through earned-income tax credits). The ongoing global corporate income tax reforms present a great opportunity to reassess thoroughly the CIT in LAC. Specifically, reforms would need to focus on aligning CIT statutory rates with those of other regions-when assessed to be relatively high-to attract investment and alleviate profit shifting, and on broadening the corporate tax base. Value-added taxes (VAT) could be improved by tackling exemptions and reduced rates. Furthermore, while estimates of additional revenue from levying the VAT on the digital economy appear modest, taxing this sector as others in the economy is critical to avoid further tax base erosion. Mode of access: Internet Aggregate Productivity imf Cross-Country Output Convergence imf Fiscal Policy imf Measurement of Economic Growth imf Taxation, Subsidies, and Revenue imf Pienknagura, Samuel. Pizzinelli, Carlo. IMF Working Papers; Working Paper ; No. 2022/008 Full text available on IMF http://elibrary.imf.org/view/journals/001/2022/008/001.2022.issue-008-en.xml IMF e-Library