| Popis: |
The current scenario of volatility and downward commodity prices evidences the vulnerability of public finances in Latin-American countries. This is particularly of concern in countries where production is highly concentrated in non-renewable natural resource revenues. Through a transnational perspective, this chapter discusses how tax systems in the region are partly determined by the mode of international insertion and, given that the effect of multiple tax instruments may differ among these resources, this highlights the importance of considering not only the aggregate but also the mix of fiscal impacts. The chapter argues for further research and policy-making to more sophisticatedly explore the relation between fiscal policy measures, international insertion and the fluctuating evolution of non-renewable natural resource prices beyond the tax implication. From such actions there are multiple challenges and trade-offs that include: how to build a sounded, sustainable and diversified tax system; maintaining reasonable investment dynamism and simultaneously achieving a progressive state participation in economic rents derived from natural resource extraction; achieving an adequate sharing of risk between the government and the investors; and assuring compliance with a reasonably low administrative cost. |
