Expenditure on other programmes (e.g. conditional cash transfers and child protection) is well targeted but the impact on inequality and poverty is limited due to their small size (see also Velez, 1995, Nunez and Sanchez, 2000, Lustig and Melendez, 2014 for similar results). Tax revenue relative to GDP is low, mainly relying on consumption and corporate taxes while the personal income tax is riddled by tax expenditures which benefit mostly the rich (Joumard and Londono Velez, 2013). Tax allowances, deductions and exemptions are so generous that less than 40% of the income of the top 1% is deemed taxable and decreases further to 11% for the top 0.01%. The incidence of social contributions is also low at the top of the income distribution as they are capped and not charged on capital income (Alvaredo and Londono, 2013).