Trends and Future Directions in Tax Policy Reform
Author | : Mr.Parthasarathi Shome |
Publisher | : International Monetary Fund |
Total Pages | : 34 |
Release | : 1992-06-01 |
ISBN-10 | : 9781451846263 |
ISBN-13 | : 1451846266 |
Rating | : 4/5 (63 Downloads) |
Book excerpt: Tax reform in Latin America during the 1980s emphasized broad-based, low-rate consumption taxes over steeply progressive income and property taxes, primarily to simplify the tax structure and facilitate tax administration. While tax reform need not necessarily raise tax-to-GDP ratios, countries that undertook tax reform experienced a higher revenue gain in terms of GDP relative to those that did not. Tax reform issues during the 1990s will include a minimum income tax, alternative corporate taxes (cash flow tax, assets tax), capturing difficult tax bases (financial intermediation, property), environment taxes, extending withholding as a taxing mechanism, and tax harmonization.