Expanding Taxable Capacity and Reaching Revenue Potential :Cross-Country Analysis

Le, Tuan Minh ; Moreno-Dodson, Blanca ; Rojchaichaninthorn, Jeep

World Bank, Washington, DC

关键词: ACCOUNTING;    AGRICULTURE;    BENCHMARK;    BENCHMARKING;    BENCHMARKS;   

DOI  :  10.1596/1813-9450-4559
RP-ID  :  WPS4559

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

An effective tax system is fundamentalfor successful country development.The first step tounderstand public revenue systems is to establish somecommonly agreed performance measurements and benchmarks.This paper employs a cross-country study to estimate taxcapacity from a sample of 104 countries during 1994-2003.The estimation results are then used as benchmarks tocompare taxable capacity and tax effort in differentcountries.Taxable capacity refers to the predictedtax-gross domestic product ratio that can be estimated withthe regression, taking into account a country'sspecific economic, demographic, and institutional features.Tax effort is defined as an index of the ratio between theshare of the actual tax collection in gross domestic productand the predicted taxable capacity.The authors classifycountries into four distinct groups by their level of actualtax collection and attained tax effort.This classificationis based on the benchmark of the global average of taxcollection and a tax effort index of 1 (when tax collectionis exactly the same as the estimated taxable capacity).Theanalysis provides guidance for countries with various levelsof tax collection and tax effort.