Tax revenues increased in more than half of Latin America and the Caribbean in 2024, with countries implementing major reforms recording the strongest gains, according to a new regional report released last week.
The findings, published in Revenue Statistics in Latin America and the Caribbean 2026 and presented at the 38th Regional Fiscal Seminar in Santiago, Chile, show that tax revenue as a share of GDP rose in 15 of 28 countries covered, while it declined in 13.
Reform-driven gains in several countries
The sharpest increases were recorded in Antigua and Barbuda, Brazil, Barbados, and Cuba. Antigua and Barbuda saw a rise of 1.9 percentage points, Brazil 2.0 points, Barbados 2.1 points, and Cuba a significant 5.0-point jump.
According to the report, these gains were largely linked to recent tax reforms. In Brazil, Cuba, and Antigua and Barbuda, stronger revenues from goods and services taxes played a central role, while in Barbados and Brazil, corporate income tax reforms were a key driver.
Declines tied to economic pressures
Not all countries saw growth. The largest drops were recorded in Trinidad and Tobago and Guyana.
In Trinidad and Tobago, lower energy prices and reduced natural gas production contributed to a 3.0 percentage point decline in the tax-to-GDP ratio. In Guyana, despite strong economic growth, tax revenues failed to keep pace, leading to a 2.4-point drop.
Regional tax structure remains stable
Across the region, the tax-to-GDP ratio ranged widely—from 9.2% in Guyana to 33.7% in Brazil. The regional average stood at 21.7%, up slightly by 0.2 percentage points from 2023.
Excluding Cuba, however, the regional average was flat, with slow growth and volatile commodity prices weighing on overall revenue performance.
Taxes on goods and services remain the dominant revenue source, accounting for 49.2% of total tax intake. Value-added tax (VAT) alone represented 28.9% of total revenues. Income and profit taxes contributed 29.1%, while social security contributions accounted for 15.9%.
Longer-term trends show gradual gains
Over the past decade, the region’s average tax-to-GDP ratio has risen by 1.5 percentage points, driven mainly by VAT and income tax growth. Between 2014 and 2024, 21 countries saw increases, while seven experienced declines.
Tax revenue per capita also rose across all countries, more than doubling in the Dominican Republic, Nicaragua, and Guyana when adjusted for purchasing power.
However, the gap with advanced economies remains substantial. The Organisation for Economic Co-operation and Development (OECD) average tax-to-GDP ratio increased by 1.2 percentage points over the same period, leaving a 12.3-point gap between the OECD and LAC averages in 2024.
Commodity dependence continues to shape revenues
The report highlights the continued influence of commodity markets on fiscal performance in the region’s largest resource-dependent economies.
Hydrocarbon revenues among major producers fell to 3.1% of GDP in 2024, down from 4.1% the previous year, largely due to weaker earnings in Colombia and Trinidad and Tobago. Guyana partially offset the decline with higher oil-related revenues.
Mining revenues also declined, slipping from 0.55% to 0.47% of GDP, mainly due to reduced tax intake in Colombia.
Preliminary projections for 2025 suggest hydrocarbon revenues will fall further to 3.0% of GDP amid lower global energy prices, while mining revenues are expected to rebound to 0.63%, supported by stronger prices for gold and silver.
Collaborative regional analysis
The report, Revenue Statistics in Latin America and the Caribbean 2026, is jointly produced by the Inter-American Center of Tax Administrations (CIAT), the Inter-American Development Bank (IDB), the United Nations Economic Commission for Latin America and the Caribbean (ECLAC), and the OECD Centre for Tax Policy and Administration and Development Centre.
It provides one of the most comprehensive annual assessments of fiscal trends across the region, tracking how tax policy, economic cycles, and commodity markets shape government revenue.
