International and regional organizations say the taxes in the Caribbean should be raised to best assist their needs in public sectors and meet the United Nations’ Sustainable Development Goals (SDGs).
Tax systems in the Caribbean are ineffective, a collection of concerned international groups said Saturday, stating that the all-around domestic resource distribution should be revised to eliminate tax evasion and tax fraud.
Among the more vocal international groups are the United Nations, the World Bank, the Organization for Economic Cooperation and Development, and the International Monetary Fund.
According to the World Bank, in a region filled with developing countries, the Caribbean nations are faced with the challenge of raising sufficient revenue needed to provided public services such as road infrastructure, healthcare and public safety.
“Governments and relevant stakeholders also need to continue to work together on establishing a fair and efficient system of international taxation,” the World Bank said.
World Bank president, Jim Yong Kim, added that in order to fulfill the requirements of international concords such as the SDGs, which he described as both an economic and ethical imperative, the Caribbean must first be able to raise enough revenue.
“The entire international community needs to eradicate tax evasion and tax avoidance,” Yong Kim said.
The Caribbean was one of the many regions implicated in the infamous Paradise Papers, which listed tax havens where the world’s one percent stash their millions far from home and the native government’s hands.