Reforming tax systems in South and South-West Asia

Matthew Hammill
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Matthew Hammill: Subregional Office for South and South West Asia, ESCAP

No PB76, MPDD Policy Briefs from United Nations Economic and Social Commission for Asia and the Pacific (ESCAP)

Abstract: Countries should have significant resources to invest in sustainable and inclusive development. A common yardstick to gauge this is the tax-to-GDP ratio, a measure of the economic importance of the public sector in the economy. On average, South and South-West Asia’s tax-to-GDP ratio is 12.6 per cent, one of the lowest in the world, below that of other developing countries in the Asia-Pacific region, at 15.2 per cent, and much lower than that of OECD countries, at 25.1 per cent.2 Several countries in the subregion have tax-to-GDP ratios under 10 per cent, with Afghanistan’s being the lowest at just 7.6 per cent.

Date: 2018
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