The structure of government revenues changed distinctly
consequence of the tax and tariff revisions of 1986.
taxes and tariffs historically exacted revenues from
productive activities--mainly agriculture--and from
trade. This revenue structure eventually created
for the production of cash crops and other export
it stimulated the development of uncompetitive industries.
time, Haiti's authorities created a public-finance pattern
when combined with a highly regressive income tax, raised
approximately 85 percent of its revenue from the rural
population, but spent only about 20 percent on those same
A 10 percent value-added tax was introduced in 1983,
was not until 1986 that tax and tariff reforms began to
source of revenues. New tax laws simplified the income-tax
process, altered tax brackets, and strengthened
efforts. In the area of trade regulations, the new
phased out export taxes and replaced quantitative
all but five goods with ad valorem tariffs of a maximum of
percent, thus essentially lowering import protection and
liberalizing trade. As a result of these policies,
derived from international trade dropped from 35 percent
1984 to an estimated 22 percent in FY 1989; the revenue
in both years was derived from internal taxes.
Data as of December 1989