PORT-AU-PRINCE, August 11 (Prensa Latina) The Haitian Ministry of Economy and Finance (MEF) today started a series of consultations aimed at adopting a General Tax Code and a Book of Tax Procedures.
According to MEF chief Patrick Boisvert, Haiti needs tax reform that adapts to the needs of the country.
The project creates a clearer and more transparent legal and fiscal framework and aims to improve the business climate to encourage investment and generate more internal resources to fund national development needs, Boisvert said.
In addition, it empowers the Directorate General of Taxes by providing states with greater tax resources and a favorable system for economic operators, he said.
For several years, the government has been trying to boost revenue, which reached 83.4 billion gourden (about $667.2 million) in the current fiscal cycle, just 69 percent of the projected amount.
Low tax and duty revenues, the latter boosted by smuggling at the borders, are some of the difficulties the government faces.
In his recent framework letter for the 2022-2023 budget project, Prime Minister Ariel Henry acknowledged that the public finance situation is worrying and demands responsibility from everyone.
According to Henry, Haiti is one of the worst-performing countries in terms of revenue mobilization, and tax pressures fluctuate around 6 percent, while the average for Latin America and the Caribbean is 23 percent. Corruption, the significant weight of the informal sector, smuggling, delays in digitizing tax and customs administrations, and taxpayers’ poor compliance with tax regulations are factors that explain the sector’s poor performance, he lamented.
al/ane