Taxation Challenges in Developing Countries

Michael Carnahan

Asia and the Pacific Policy Studies from Crawford School of Public Policy, The Australian National University

Abstract: A well-functioning revenue system is a necessary condition for strong, sustained and inclusive economic development. However, the revenue systems in some developing countries have fundamental shortcomings. Using Public Expenditure and Financial Accountability assessment data, this article provides a summary of the revenue raising capabilities across 58 developing countries. Tax reforms or tax system changes need to be made mindful of that current capacity. The optimal choice of tax regime may be different when administrative capacity is low. The increasing globalisation of economic activity adds a further layer of complexity that developing countries need to manage in building and maintaining their revenue systems. Finally, any proposals to change the revenue system in a developing country need to recognise that, like developed countries, tax reforms are highly political endeavours.

Keywords: tax policy; tax administration; tax reform; developing countries; fiscal policy (search for similar items in EconPapers)
Pages: 14 pages
Date: 2015-01-28
New Economics Papers: this item is included in nep-acc, nep-pbe and nep-pub
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://onlinelibrary.wiley.com/doi/10.1002/app5.70/epdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden (http://onlinelibrary.wiley.com/doi/10.1002/app5.70/epdf [301 Moved Permanently]--> https://onlinelibrary.wiley.com/doi/10.1002/app5.70/epdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:een:appswp:201513

Access Statistics for this paper

More papers in Asia and the Pacific Policy Studies from Crawford School of Public Policy, The Australian National University Contact information at EDIRC.
Bibliographic data for series maintained by Sung Lee ( this e-mail address is bad, please contact ).