Governments in Latin America and the Caribbean do not have the necessary resources to guarantee the rights of their citizens. There is an urgent need in these countries to review and evaluate the effectiveness of tax expenditures, in order to understand whether they are achieving their objectives – and to limit, rationalize and eliminate those that are inefficient. The money that governments currently do not collect because of tax incentives for businesses could raise public spending on health care by up to 50%.
This report, co-written by the Economic Commission for Latin America and the Caribbean (ECLAC) and Oxfam, seeks to show why it is urgent that the effectiveness of these incentives is reviewed and assessed, in order to guarantee the rights of citizens.
It is time to move to a better use of tax incentives, one that would make them an instrument of public policy in achieving the Sustainable Development Goals, and ensure that they benefit the collective good.