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Consumption taxesIt is often assumed that consumption taxes, and in particular sales taxes, are simply taxes collected on behalf of government and therefore have a minimal impact on business. However, some sales taxes can be a tax borne, and all sales and consumption taxes have a significant impact on the number of hours it takes to comply and the number of tax payments made. Therefore these taxes also need to be efficient. The chart below shows that in the Latin America and Caribbean region, there are many economies where consumption taxes are a significant element of the hours spent on compliance.  |