콘텐츠 바로가기
로그인
컨텐츠

Category Open

Resources

tutorial

Collection of research papers and materials on development issues

home

Resources
Economy Macroeconomics

Print

Tax reform in developing countries (English)

Related Document
Frame of Image
  • Tax reform in developing countries (English)
  • Thirsk, Wayne
  • World Bank (WB)


link
Title Tax reform in developing countries (English)
Similar Titles
Material Type Reports
Author(English)

Thirsk, Wayne

Publisher

World Bank (WB)

Date 1997
ISBN 0-8213-3999-0
Language English
File Type Link
Subject Economy < Macroeconomics

Abstract

The eight case-study countries in this report--Bolivia, Colombia, Indonesia, Jamaica, Korea, Mexico, Morocco, Turkey--provide a laboratory for studying tax reform in practice. The countries vary not only in per capita income but also in the context within which tax reform takes place. They undertook different types of reform and the outcome differed. Several lessons emerge: 1) Although all countries are often forced to sacrifice the optimal tax structure in favor of a simpler, more uniform system, to conform to the administrative capacity of the country, the sacrifices can be especially large in developing countries. 2) Developing country tax systems need not be overly concerned with equity, since redistribution in these countries is best carried out by public expenditures. 3) Instances where obviously welfare-improving, even Pareto-improving, tax reforms are not undertaken illustrate the point that even reforms benefiting everyone may be opposed by the affected parties who perceive their bargaining power altered (and possibly reduced) in the longer run.