Taxation in Developing Countries
Taxes are a crucial policy issue, especially in developing
countries. Just recently, proposals to raise middle-class taxes
toppled the Bolivian government, and plans to extend or increase
the value-added tax caused political unrest in Ecuador and Mexico.
Despite the impact of tax policy on developing countries, a
comprehensive study has yet to be written. Treating Argentina,
Brazil, India, Kenya, Korea, and Russia as key case studies, this
volume outlines the major aspects of current tax codes and explores
their economic and political implications.
Examples of both the poorest and wealthiest developing
countries, Argentina, Brazil, India, Kenya, Korea, and Russia
uniquely demonstrate the diverse fiscal problems of tax reform.
Each economy relies heavily on indirect and corporate income taxes,
though recently some have reduced their tariff rates and have
switched from excise to value-added taxes. There is a large,
informal economy in most of these countries, and tax evasion by
firms is a significant concern. As a result, tax revenue remains
low, even though rates are as high as those in developed economies.
Also, unconventional methods to collect revenue have been
implemented, including bank debit taxes, state ownership of firms,
and implicit taxes on individuals in the informal sector.
Exploring these and other concerns, as well as changes in tax
law, administration, and fiscal pressures, this comprehensive
anthology clarifies the current landscape of tax administration and
the economic future of the world's poorer economies.
Subjects: Business, Political Science
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