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This presentation from the Inter-American Development Bank emphasizes the critical role of indirect tax harmonization, particularly Value Added Tax (VAT) and excise taxes, in fostering economic integration in Least Developed Countries (LDCs). It discusses the implementation of VAT in the Andean Community, analyzing its revenue effects and economic impact. Key features of the harmonized VAT are explored alongside the rationale behind its adoption and the technical components involved. The presentation also outlines the negotiation processes crucial for successful tax harmonization in the region.
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