Toward a More Business Friendly Tax Regime : Key Challenges in South Asia

Reva, Anna

World Bank, Washington, DC

关键词: TAX INCENTIVES;    TAX RESEARCH;    CAPITAL MARKETS;    LIABILITY;    SALES TAX;   

DOI  :  10.1596/1813-9450-7513
RP-ID  :  WPS7513

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This paper discussescompetitiveness-related issues surrounding the design andadministration of corporate and value added/sales taxes infour South Asian countries -- Bangladesh, India, Pakistan,and Sri Lanka. The paper is based largely on analysis of taxlegislation; in addition, data from the World Banksenterprise surveys, the Doing Business report, as well asindustry studies are used for evidence on tax compliancecosts for business. The review of tax regulations in theregion shows several commonalities: (1) widespread use oftax incentives to support selected industries, types offirms, and industrial locations; (2) many exemptions fromvalue-added taxes as well as the practice of levyingmultiple indirect taxes on the same base; and (3) high costsof tax compliance for businesses. The paper discusses theconsequences of tax policies for the competitiveness ofSouth Asian producers, describes the main problems in taxadministration, and outlines key directions for reforms.