El Salvador: Improvements in fiscal policy recommended

An extra $300 to $400 million would enter the State treasury if tax evasion, as well as contraband trade, were eliminated, according to a detailed analysis prepared by Funde.

Monday, August 25, 2008

According to the analysis from the National Development Foundation (Funde), experts recommend a series of measures that go from fighting contraband trade to increasing existing tax rates such as VAT, and approving new taxes to improve the financial state of the country.
Only through a more effective attack on tax evasion and contraband trade and by fomenting a greater tax culture in those segments of the population that do not pay what they should pay, will they be able to obtain an additional $300 to $400 million, said the economic expert, Roberto Rubio.

More on this topic

Tax Evasion in Guatemala Reaches 7% of GDP

January 2011

There is urgent need to strengthen the Superintendence of Tax Administration (SAT) with audit and control instruments.

Tax evasion reached $ 2,500 million, and businessmen insist that before a tax reform is passed, increasing tax burden and affecting competitiveness in the country, it is required "to improve the fight against tax evasion and customs smuggling."

Fiscal Policies and Systems

March 2010

High taxes and evasion eroding economic growth in Latin America and the Caribbean.

New IDB study says governments must simplify tax systems and reduce evasion

Complex tax systems and widespread evasion are distorting investment decisions by companies in Latin America and the Caribbean, reducing the efficiency of markets and preventing governments from investing in infrastructure, education and other key public goods.

Warnings in Panama Over Increase in Smuggling

July 2015

The private sector has signalled an increase in seizures of drugs, food, smuggled cigarettes, and consumer products from illegal sources.

From a statement issued by the Chamber of Commerce, Industries and Agriculture of Panama (CCIAP):

The Chamber of Commerce, Industries and Agriculture of Panama (CCIAP) has expressed concern over the increase in illegal trade including smuggling, counterfeiting and piracy.

Guatemala Seeks to Raise $58 Million with 'Anti-evasion Law'

April 2011

A new attempt is being made by the Álvaro Colom government to increase tax collection by enforcing the so-called 'Anti-evasion Law'.

The bill contains administrative measures to improve control over and auditing of existing taxes as well as standardize aspects that seek to combat tax and customs fraud and smuggling, according to a communication from the Finance Ministry.

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