Financial Crime World

Haiti’s Capacity Development Efforts Yield Positive Results Despite Challenges

Progress in Implementing Structural Reforms

Despite facing multiple challenges, Haiti has made significant progress in implementing its structural reform agenda, supported by the International Monetary Fund (IMF) under its Capacity Development (CD) program. The country achieved all of its structural benchmarks for end-April 2023, with some minor delays.

Key Achievements

  • Tax Administration Reform: A decree making it compulsory to use Taxpayer Identification Numbers (TINs) for all finance departments was successfully implemented, with sanctions for fraudulent or non-use.
  • Improved Governance and Public Financial Management: The Economic and Social Assistance Fund (FAES) re-established its governing board and began publishing quarterly reports on operations.
  • Enhanced Anti-Money Laundering Measures: A new decree aligned with international standards was drafted and is expected to be implemented soon.
  • Strengthened Central Bank Law: Amendments to the law governing the Bank of the Republic of Haiti (BRH) were ratified by its Board of Directors.
  • Simplified Tax System: All codes and tariffs related to customs were published, simplifying the tax system and eliminating many exemptions.

IMF Praises Haiti’s Efforts

The IMF has praised Haiti’s efforts, citing progress in implementing structural reforms despite multiple challenges. While the country’s macroeconomic outlook remains challenging, with growth expected to be muted at 0.1 percent in FY2023 due to the security crisis, inflation is expected to moderate gradually.

Policy Discussions

  • Strong Domestic Revenue Performance: Haiti’s strong domestic revenue performance during the first half of FY2023 was driven by improved revenue administration and the collection of taxes on fuel imports at new regulated prices.
  • Challenges in Implementing Budget: The country still faces significant challenges in implementing its 2023 budget, including a high level of monetary financing of the deficit.

Conclusion

Overall, Haiti’s capacity development efforts have yielded positive results, demonstrating the country’s commitment to implementing structural reforms and improving its economic governance. Despite ongoing challenges, Haiti is making progress towards achieving its goals and strengthening its economy.