Bank Debit Taxes in Latin America: An Analysis of Recent Trends

By Isaias Coelho, Victoria J Perry, Liam P. Ebrill

May 1, 2001

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Isaias Coelho, Victoria J Perry, and Liam P. Ebrill Bank Debit Taxes in Latin America: An Analysis of Recent Trends, (USA: International Monetary Fund, 2001) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Six Latin American countries have levied taxes on withdrawals from bank accounts, which have been viewed as a convenient tax handle during a difficult fiscal period. The paper reviews the arguments for and against this type of taxation, describes the taxes, and surveys their revenue performance and economic impact. It concludes that the recently implemented taxes have been successful in raising revenue in the short term, but that adverse allocational impacts have likely been significant. The tax may work better in times of fiscal crisis, when financial intermediation is deep, and when the tax rate is modest.

Subject: Bank levy, Financial markets, Financial transaction tax, Income and capital gains taxes, Revenue administration, Stock markets, Taxes

Keywords: Argentina, Argentinean tax, Bank, Bank debit tax, Bank debit taxes, Bank debit type tax, Bank levy, Brazil, Case of bank debit tax, Colombia, Debit, Debit tax, Debit taxes in Latin America, Distorting tax, Ecuador, Ecuadorian tax, Europe, Financial transaction tax, Financial transactions taxes, Income and capital gains taxes, Peru, Stock markets, Tax, Tax enforcement, Tax measure, Transaction, Turnover taxes cascade, Type tax, Venezuela, WP

Publication Details

Pages:

33
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2001/067
Stock No:

WPIEA0672001
ISBN:

9781451848908
ISSN:

1018-5941

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