OECD report: Latin America and the Caribbean 2023 – Taxes on goods and services still most important source of tax revenue

Taxes on goods and services continued to be the most important source of tax revenue in the region in 2021, bringing in around 50% of total tax revenue on average. Of this amount, revenue collected from the value added tax (VAT) represented 29.9% of total tax revenue. Revenue from taxes on income contributed 26.7% of total tax revenues, of which revenues from corporate income tax brought in 15.4% of total tax revenues and personal income tax raised 9.4%. The average share of social security contributions in total tax revenues in the region was 17.0% in 2021.

Environmentally related taxes collected revenue amounting to 1.0% of GDP on average in 2021 in the 25 countries of the region for which data are available. More than two-thirds of the revenue from environmental taxes was collected from taxes on energy, of which the most significant were excises on diesel and petrol which accounted for 0.7% of GDP on average.

Source: OECD



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