The 1986 tax reform in Bolivia was comprehensive and highly successful. Since that time the economy has moved from a state of hyperinflation to one of economic stability and growth. As this process continues there will be a need for additional government revenues to develop social and physical infrastructure that Bolivia needs to achieve a high rate of economic growth. The tax changes that have been put forth build on the 1986 tax reform. At the same time as modifications are made to the existing tax system, great care must be made to make sure that changes add to the stability of the tax system and not introduce changes that will simply create political and business forces that over time will erode the ability of the system to generate revenues.
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