Panama has the lowest indirect taxes
Panama has the lowest indirect taxes in Latin America, with a 7% VAT charged on consumer purchases, according to professional services firm KPMG.
Honduras has the region’s highest indirect tax, at 18%.
The average is 15% in Latin America, where Argentina at 22% has the highest rate.
Sales tax was the measure used for Costa Rica and Honduras, neither of which charges a VAT on goods and services (countries are listed in order of rate of tax expressed as a percentage).
1 Panama 8
2 Guatemala 12
3 Costa Rica 13
4 El Salvador 13
5 Nicaragua 15
6 Honduras 18