The IMF Country Reports Series covers economic and financial developments and trends in member countries. Each report, prepared by a staff team after discussions with officials of the country, is published at the option of the member.
This study focused on environmental tax measures, and on allocation, pricing, and taxation of Iceland's major hydropower and geothermal resources. Measures to secure the tax base for the corporate income tax (CIT) are proposed. Taxation of the financial sector can be improved by a number of measures. The measures that increase fiscal levies on energy-intensive industries should be avoided. The proposals in this paper aim at efficiency and equity in the tax system rather than revenue growth.