Subnational Taxes in Developing Countries: The Way Forward

Richard M. Bird () and Roy W. Bahl ()

No 16, Working Papers Series from Rotman Institute for International Business, Joseph L. Rotman School of Management, University of Toronto

Abstract: This paper reviews the literature and evidence on the most appropriate structure of regional and local taxes in developing countries. A good subnational tax system is critical to an effective and sustainable system of intergovernmental fiscal relations – a need that has become increasingly important around the world as more and more public services are being delivered through subnational governments. In most developing countries potentially sound and productive taxes exist that are suitable for regional and local governments: property taxes, taxes on motor vehicles, surcharges on national personal income taxes, payroll taxes, and even, in some cases, regional value added taxes and properly designed local business taxes.

Keywords: local taxes; regional taxes; fiscal decentralization (search for similar items in EconPapers)
JEL-codes: H71 H77 O23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-acc, nep-dev, nep-geo, nep-pbe and nep-pub
Date: Written

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Related works:
Working Paper: Subnational Taxes in Developing Countries: The Way Forward (2009)
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Persistent link: http://EconPapers.repec.org/RePEc:ttp:iibwps:16

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