Estimates show that just correcting for tax evasion makes a significant difference on the share of the income distribution (Lopez et al., In particular, the average participation of the top 1% on GDP over the period 2005-2009 decreases by 2.5 percentage points of GDP. This reform will increase revenues and has the potential to reduce inequality (Lopez et al., The reform could negatively affect investment and growth because it reduces after-tax returns on investment, , however this could be compensated by a positive effect on long run growth through education, if the funding is used successfully in reforming the school system. Furthermore, there is some uncertainty about the revenue yield of the tax reform, stemming from how the private sector will adapt. The envisaged gradualism of implementation is thus welcome.