Coordinating Tax Reforms in the Poorest Countries : Can Lost Tariffs be Recouped?

Wagle, Swarnim

关键词: ACCOUNTING;    ADMINISTRATION OF JUSTICE;    AGRICULTURE;    APPAREL;    APPLIED TARIFF;   

DOI  :  10.1596/1813-9450-5919
RP-ID  :  WPS5919

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

A revenue-neutral switch from tradetaxes to domestic consumption taxes is fraught withimplementation challenges in countries with a large informalsector. It is shown for a sample of low-income countriesover 25 years that they have had a mixed record ofoffsetting reductions in trade tax revenue. The paper thenanalyzes the specific case of Nepal, using a unique data setcompiled from unpublished customs records of imports,tariffs and all other taxes levied at the border. Itestimates changes to revenue and domestic productionassociated with two sets of reforms: i) proportional tariffcuts coordinated with a strictly enforced value-added tax;and ii) proposed tariff cuts under a regional free tradeagreement. It is shown that a revenue-neutral tax reform isconditional on the effectiveness with which domestic taxesare enforced. Furthermore, loss of revenue as a result ofintra-regional free trade can be minimized through judicioususe of Sensitive Lists that still cover substantially allthe trade as required by Article XXIV of the GATT.