Can Covid-19 Induce Governments to Implement Tax Reforms in Developing Countries?
Sanjeev Gupta and
Joao Jalles ()
No 2021/0168, Working Papers REM from ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa
We estimate that the short to medium-term fiscal impact of previous pandemics has been significant in 170 countries (including low-income countries) during the 2000-2018 period. The impact has varied, with pandemics affecting government expenditures more than revenues in advanced economies, while the converse applies to developing countries. Using a subset of 45 developing countries for which tax reform data are available, we find that past pandemics have propelled countries to implement tax reforms, particularly in corporate income taxes, excises and property taxation. Pandemics do not drive revenue administration reforms.
Keywords: fiscal policy; pandemics; local projection; impulse response functions; tax reforms; binary choice models (search for similar items in EconPapers)
JEL-codes: C33 C36 D63 E32 E62 H20 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ise:remwps:wp01682021
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