Taxing Commodities with the Future in Mind

Abstract

Fiscal revenues from nonrenewable resources are critically important for Latin America and the Caribbean. Eight countries, representing 43 percent of the region’s GDP, obtain a significant share of their fiscal revenues from nonrenewable resources such as oil, gas, and minerals. For example, Venezuela and Trinidad and Tobago derive about half their total fiscal revenues from nonrenewable resources, and Bolivia, Chile, Ecuador, and Mexico derive between 25 percent and 35 percent. In Colombia and Peru, while fiscal dependence is much lower, it has increased considerably in recent years (table 10.1).