The CIAT Tax Research Manager, Mr. Miguel Pecho Trigueros, presented a paper entitled: “Recent Evidence of the Impact of the Crisis on Collection” in the session on Tax Reforms of the XXII Tax Policy Regional Seminar, organized by the ECLAC Executive Secretariat and held in Santiago de Chile on January 26-29, 2010.

In his paper Mr. Pecho noted that in 2009, the collection of taxes administered by the Central Governments of Latin America (excluding social security contributions) had experienced an average 7.6% decrease in real terms, with respect to 2008, as result of the generalized contraction in economic activity and, in some cases, the application of tax measures implemented as part of the tax incentive packages for facing the international economic crisis. Thus the tax pressure would have decreased to some 13.7% of GDP.

Bearing in mind that the negative trend in collection has begun to revert as of the third and fourth quarters of 2009, and that new tax measures have entered into force, Mr. Pecho stated that CIAT anticipates for 2010, as compared to 2009, an average increase of 9.4% in real terms in the collection of taxes administered by the Central Governments of Latin America, with a tax pressure of 14.3% of GDP.

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