CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Nicaragua Urged To Plug Leaking VAT System

Nicaragua Urged To Plug Leaking VAT System

by Mike Godfrey, Tax-News.com, Washington

04 July 2017


Nicaragua should reduce the complexity of its value-added tax system and overhaul exemptions to boost voluntary compliance rates, the International Monetary Fund (IMF) has said.

The IMF said that high tax evasion rates can be linked to the complex system of tax exemptions, which cover a wide range of goods and services. It added that wealthier households exclusively benefit from more than half of these exemptions and recommended that such tax breaks be removed while retaining those measures that support poorer households.

Specifically, it said Nicaragua should maintain exemptions for a few basic goods that are most consumed by the poor or introduce a second, lower VAT rate of five percent, which could be applied to certain budget goods rather than the full 15 percent rate.

TAGS: tax | value added tax (VAT) | Nicaragua | budget | International Monetary Fund (IMF) | tax breaks

To see today's news, click here.

 






Close

Password Reminder

Please enter your email address to receive a password reminder.

 











Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »