Brahimi, Lakhdar, 2007, State Building in Crisis and Post-Conflict Countries, presented at the United Nations’ 7h Global Forum on Reinventing Government-Building Trust in Government, held in June 2007 in Vienna.
Ebrill, L., M. Keen, J.P. Bodin, and V. Summers, 2001, The Modern VAT, International Monetary Fund, Washington DC.
Gupta, S., R. Powell, and Y. Yang, 2006, Macroeconomic Challenges of Scaling Up Aid to Africa. A Checklist for Practitioners, IMF, Washington DC.
Hood, R., D. Husband, F. Yu, 2002, Recurrent Expenditure Requirements of Capital Projects: Estimation for Budget Purposes, World Bank, Policy Research Working Paper No. 2938.
International Monetary Fund (IMF), 2004, Rebuilding Fiscal Institutions in Post-Conflict Countries, Fiscal Affaires Department, Washington DC.
International Monetary Fund (IMF), 2006a, Haiti. An Agenda for Strengthening Tax Policy and Revenue Administration, unpublished report of the Fiscal Affaires Department, Washington DC.
International Monetary Fund (IMF), 2006b, Haiti: Interim Poverty Reduction Strategy Paper, Country Report No. 06/411, Washington DC.
Lora, E., M. Cardenas, and V. Mercer-Blackman, 2005, The Policy Making Process of Tax Reform in Latin America, Prepared for the Inter-American Development Bank Workshop on State Reform, Public Policies, and Policymaking Processes, Washington, DC.
Ministère de l’Economie et des Finances (MEF), 2007, Décret sur l’Impôt dur le Revenu, available on http://www.mefhaiti.gouv.ht/fiscalite.htm
By Gamal El-Masry and Katja Funke.
Recent donor conferences took place in November 2006 in Madrid and in March 2007 in Washington, D.C.
For a discussion of the impact of additional externally financed investment on current expenditure, see Gupta, Powell, and Yang (2006).
According to the World Bank definition, LICs are countries with a per capita income of less than US$875. The LIC comparator group includes countries with a population of 5–15 million, similar to Haiti (9.1 million). These are: Benin, Burkina Faso, Cambodia, Chad, Guinea, Haiti, Kyrgyz Republic, Lao People’s Dem. Rep, Malawi, Mali, Niger, Papua New Guinea, Rwanda, Senegal, Sierra Leone, Tajikistan, Togo, Zambia, Zimbabwe. See World Bank (2005).
The comparator group of Western Hemisphere countries includes Bolivia, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Nicaragua, and Paraguay.
The latter are Bolivia and Ecuador (hydrocarbons), and Paraguay (hydroelectric power).
The post-conflict countries in our sample reach revenue levels of up to 20 percent of GDP, which confirms that a strong recovery of revenue collection is possible after conflict situations.
Similar in terms of population.
Excluding the resource-rich countries, namely Bolivia, Ecuador, and Paraguay.
While officially known as a turnover tax (TCA), this consumption tax is akin to a VAT.
In 2006, the external trade and services deficit was 22 and 7 percent of GDP, respectively. Accordingly, about 30 percent of domestic demand could not be covered by domestic production.
This sections draws on technical assistance that was provided to Haiti in 2005 by the IMF’s Fiscal Affairs Department (FAD) (IMF, 2006a).
SIDONIA is a customs automation system developed by UNCTAD.
In general, tax efficiency measures are used to assess the performance of a particular tax. The perfectly efficient tax would lead to an efficiency ratio of 100 percent if a uniform tax rate is applied and tax collection is measured in percent of the tax base. In the case of an income tax, the appropriate tax base would be the GNP, and in the case of a consumption based tax like a VAT, the appropriate tax base would be domestic consumption. For this paper, income tax efficiency is measured as the ratio of income tax revenue (as a percent of GDP) to the sum of the highest personal and corporate in come tax rates. This measure is useful for crosscountry comparisons, but its level should not be interpreted as a gauge of absolute collection efficiency. The use of the sum of corporate and personal income tax rates in the denominator to calculate the efficiency ratio implies that income would have to be fully taxable under both corporate and personal income taxes to achieve an efficiency ratio of 100 percent, which is not a desirable feature in any income tax system.
The average top tax rate for personal and cooperate income tax in Latin America, the Caribbean, and Bermuda is 30 percent. (see IMF, FAD data bases on “income tax rate”).
See Le Moniteur Spécial (No. 10, October 5, 2005).
VAT efficiency is calculated as total VAT revenue (as a percentage of GDP), divided by the VAT standard rate.
Imported inputs for export are VAT exempted but domestically purchased inputs are subject to VAT. Exporters can deduct any VAT credit from VAT obligations but no refund is granted if VAT credits exceed VAT obligations, which is often the case for companies that mainly export their products..
While Haiti is a member of CARICOM, it has yet to apply the regulations of the CARICOM Single Market and Economy (CSME).
Variable excises are used to stabilize the retail pump price. They are adjusted for each oil delivery to maintain a stable retail pump price, unless the landed cost deviates by more than 5 percent from the previous shipment, in which case the retail pump price is raised or lowered accordingly.
Diesel purchased by the electric company Ed’H for the purpose of generating electricity is tax free.