Fiscal revenues from non-renewable natural resources in Latin America
The report contains a special chapter describing changes in revenues from non-renewable natural resources. Its main findings for 2014 show the sharp decline in commodity prices which resulted in a significant reduction in hydrocarbon-related revenues by 0.7 percentage points of GDP and for 2015 the expected drop is estimated at 2.1 percentage points of GDP. This impact is substantial on revenues that are not classified as taxes and therefore are not included in the tax to GDP ratios. Mining revenues were similarly affected by the decrease in commodity prices, causing these revenues to fall by 0.1 percentage point of GDP in 2014. The estimated drop for 2015 is similar to that in 2014. In some countries, increases in mining production coupled with currency depreciations have resulted in relatively stable non-tax revenues. On the other hand, corporate income tax revenues in the sector have fallen sharply as profit margins tightened.