VZCZCXRO4395
PP RUEHQU
DE RUEHPU #2304 3352120
ZNR UUUUU ZZH
P 012120Z DEC 06
FM AMEMBASSY PORT AU PRINCE
TO RUEHC/SECSTATE WASHDC PRIORITY 4815
INFO RUEHZH/HAITI COLLECTIVE PRIORITY
RUEHBR/AMEMBASSY BRASILIA PRIORITY 1306
RUEHSA/AMEMBASSY PRETORIA PRIORITY 1141
RUEHQU/AMCONSUL QUEBEC PRIORITY 0634
RUEATRS/DEPT OF TREASURY WASHDC PRIORITY
RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY

UNCLAS PORT AU PRINCE 002304 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR WHA/CAR 
EB/IFD 
S/CRS 
STATE PASS TO USAID FOR LAC/CAR 
INR/IAA (BEN-YEHUDA) 
COMMERCE FOR SCOTT SMITH 
TREASURY FOR JEFFREY LEVINE 
WHA/EX PLEASE PASS USOAS 
 
E.O. 12958: N/A 
TAGS: ECON EAID PGOV PINS HA
SUBJECT: HAITI: REVENUE COLLECTION 
 
¶1.  Summary:  GoH revenue collection for fiscal year 2006 
(ending 9/30/06) was approximately ten percent higher than 
projected, due mostly to greater than expected internal tax 
collection (income tax and VAT) and increased customs duties. 
 The Director General of Taxation attributes this performance 
to stronger efforts from the Government of Haiti to fight tax 
evasion and expand computerization of tax administration 
offices in Port-au-Prince.  End Summary. 
 
Total Revenue Collection Increases 
- - - - - - - - - - - - - - - - - - 
 
¶2.  Government revenue collection was approximately USD 
501.75 million for fiscal year 2006, which exceeded 
projections by ten percent.  Customs revenue collection 
accounted for about 80 percent of total revenue collected. 
Statistics provided to post by the GoH General Directorate of 
Taxation (DGI) show that fiscal revenue collection was USD 
165 million.  The DGI's actual revenue collection exceeded 
its prediction of 143 million for the fiscal year by fifteen 
percent.  Tax collection branches in the provinces 
contributed only three percent of total revenue for the year. 
 In the provinces, tax collection trailed government 
projections for each of the twelve local tax collection 
agencies.  Only Fort-Liberte collected 98 percent of its 
budget projection.  The other eleven local offices lagged 
largely behind the targets, with Jeremie and St. Marc 
collection only 39 percent of their projected revenues. 
Note:  The Haitian fiscal year runs from October 1 to 
September 30, and figures are converted into USD at the rate 
of 39.86 gourdes to 1 USD.  End Note. 
 
¶3.  Another major revenue component, customs collection, 
exceeded projections by about 127 percent, with actual 
revenue collected at about USD 245 million instead of the 
projected 129.9 million.  Compared to the previous fiscal 
year, this represented an increase of 45 percent.  Similar to 
fiscal revenue collection, the Customs office in 
Port-au-Prince (covering the airport and port) represented 
about 90 percent of total customs receipts.  Branches in the 
provinces contributed less than ten percent.  this is partly 
due to the poor infrastructure in the regions covered by 
those branches, which facilitates smuggling activities and 
corruption.  Customs collections were also affected by a 
violent protest at the Malpasse Border point, which shut down 
the Customs office there for about three months.  The 
majority of Haitian commerce with he Dominican Republic is 
conducted by truck via Malpasse/Jimani. 
 
Revenue Collection Projections Target for FY06-07 
- - - - - - - - - - - - -  - - - - - - - - - - - - 
 
¶4.  In fiscal year 2007, DGI officials expect to collect 
about USD 183.5 million, about 27 percent more than the prior 
year.  The government predicts that most of this revenue will 
come from income tax and VAT, which will account respectively 
for USD 79.83 million and USD 38.4 million.  DGI intends to 
implement several projects over the fiscal year to boost tax 
collection in the provinces, including extending 
computerization of tax administration to local branch offices 
and interconnecting them via satellite to the central office. 
 Aside from increasing fees for motor vehicle plates and for 
driver license issuance, DGI also plans to implement a 
program to track and register tax payers in an effort to 
create a larger fiscal registry system and broaden the tax 
base. 
 
¶5.  Comment:  Local tax and customs agencies will have to 
increase revenue collection significantly to meet IMF 
collection targets for this year (about fifteen percent of 
GDP).  If the GoH fails to meet the collection target, it 
will likely delay implementation of the GoH's Social 
Appeasement program (PAS) and investment in infrastructure 
projects.  End Comment. 
SANDERSON