This study provides an up-to-date overview of taxation in Latin America and the Caribbean —analysing the share of tax revenue in the total income of public sectors across the region, and the importance of levies charged on the exploitation of natural resources, value added tax (VAT), income tax, taxes on capital, and revenues raised by subnational governments. The analysis also describes the key tax reforms introduced in the region over the last five years. A second part of this document sets out a reciprocity-based policy framework through which to investigate tax-policy issues. It identifies some of the determinants of taxation in individual countries and explains how inclusive and egalitarian reciprocity between citizens and the State can be eroded in practice in the region. Based on this overview, the recommendation is to strengthen reciprocity through policies that encourage the formalization of employment, institutional strengthening and equality, as foundations for a renewed fiscal covenant in the region.