The International Monetary Fund (IMF) is to send a team of experts to Honduras in early March to review the tax exemptions employed by the Government, the head of the Executive Directorate of Revenue (DEI), Miriam Guzman, said. Guzman said that tax exemptions, which are used to attract investment in certain sectors and to stimulate production and employment, cost the Government around HNL 20 billion (USD 887 million) in uncollected revenue each year.
Miriam Guzman, head of the Executive Directorate of Revenue
At the end of 2014, the IMF approved an economic program for Honduras supported by an IMF loan worth about USD 188.6 million dollars.
The program targets central government and public sector deficits of 3.5 percent and two percent of gross domestic product (GDP) in 2016, respectively.
To meet the program’s targets the Government is planning to raise revenue through measures designed to improve tax administration and boost tax compliance.
SOURCE: Global Tax News