The study comprises various sections. Funides starts by making a brief history of the country’s public finances, and discusses the basis for a healthy tax system. It analyzes the road ahead and proposes topics to be considered before deciding the scope of a tax reform.

The following section, written by José Luis Medal, analyzes the main elements of the Nicaraguan tax system, and discusses the recent reductions in collection as an antecedent for further analysis. Additionally, he breaks apart the government’s tax reform proposal, presented in august, which seeks a system based on income tax.

Source: Nicaraguan Foundation for social and Economic Development

More on this topic

Plans for Fiscal Reform in Nicaragua

April 2018

The Government and the private sector have started negotiations to create a proposal for fiscal reform, which could include, among other things, changes aimed at achieving the financial sustainability of the Social Security scheme.

Without revealing details of the first sessions, the Higher Council of Private Enterprise (Cosep) reported that the reform negotiated with the authorities is focused on preventing insolvency of the Nicaraguan Social Security Institute and guaranteeing the country's economic growth.

Guatemala's Fiscal Fragility

August 2013

The International Monetary Fund is warning that adjustments are needed in order to increase tax revenues and reduce the state's fiscal deficit.

They note that "... the tax reform passed in 2012, which came into effect on January 1 this year, broadens the tax base and gives the government more tools to enforce fiscal and supervisory controls and eliminates tax exemptions and reduces corporate tax rates," noted an article in S21.com.gt.

Costa Rica: Measures to Reduce the Fiscal Deficit

May 2010

Finance Minister Fernando Herrero said that "our efforts should be focused on increasing tax income through administrative and legislative measures".

Herrero is working on a tax reform bill, which aims to unify previous projects into one update. Now, through a press release, the minister announced administrative measures: "a renewed effort in collecting the tax delinquent portfolio (which amounts to more than $ 13 million), a more intense audit of high-risk groups from an evasion point of view (liberal professionals, medium-commerce), informal businesses and combating smuggling. "

First Package of Tax Measures

May 2009

The future Salvadoran Finance Minister is analyzing the first economic measures by the incoming government along with his team.

The future Finance Minister, Carlos Cáceres, said during an interview with La Prensa Gráfica that the first steps to be taken will be the unification of the Customs Department’s information system.