Coordinating Tax Reforms in the Poorest Countries : Can Lost Tariffs be Recouped?

Wagle, Swarnim

dc.creator	Wagle, Swarnim
dc.date	2012-03-19T18:06:53Z
dc.date	2012-03-19T18:06:53Z
dc.date	2011-12-01
dc.date.accessioned	2023-02-17T21:01:43Z
dc.date.available	2023-02-17T21:01:43Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111216211610
dc.identifier	http://hdl.handle.net/10986/3689
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244653
dc.description	A revenue-neutral switch from trade taxes to domestic consumption taxes is fraught with implementation challenges in countries with a large informal sector. It is shown for a sample of low-income countries over 25 years that they have had a mixed record of offsetting reductions in trade tax revenue. The paper then analyzes the specific case of Nepal, using a unique data set compiled from unpublished customs records of imports, tariffs and all other taxes levied at the border. It estimates changes to revenue and domestic production associated with two sets of reforms: i) proportional tariff cuts coordinated with a strictly enforced value-added tax; and ii) proposed tariff cuts under a regional free trade agreement. It is shown that a revenue-neutral tax reform is conditional on the effectiveness with which domestic taxes are enforced. Furthermore, loss of revenue as a result of intra-regional free trade can be minimized through judicious use of Sensitive Lists that still cover substantially all the trade as required by Article XXIV of the GATT.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5919
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ACCOUNTING
dc.subject	ADMINISTRATION OF JUSTICE
dc.subject	AGRICULTURE
dc.subject	APPAREL
dc.subject	APPLIED TARIFF
dc.subject	AVERAGE TARIFF
dc.subject	BOND
dc.subject	BUDGET CONSTRAINT
dc.subject	CAPACITY CONSTRAINTS
dc.subject	CAPITAL GOODS
dc.subject	CHECKS
dc.subject	CLASSICAL ECONOMICS
dc.subject	COLLECTED TARIFF
dc.subject	COLLECTED TARIFFS
dc.subject	CONSUMER GOODS
dc.subject	CONSUMER PRICES
dc.subject	CONSUMERS
dc.subject	COST OF COLLECTION
dc.subject	CUSTOMS
dc.subject	CUSTOMS ADMINISTRATION
dc.subject	CUSTOMS AUTHORITIES
dc.subject	CUSTOMS UNIONS
dc.subject	DEFAULT CASE
dc.subject	DEMAND ELASTICITIES
dc.subject	DEMAND ELASTICITY
dc.subject	DEVELOPED COUNTRIES
dc.subject	DEVELOPING COUNTRIES
dc.subject	DEVELOPMENT BANK
dc.subject	DEVELOPMENT ECONOMICS
dc.subject	DEVELOPMENT POLICY
dc.subject	DOMESTIC CONSUMPTION
dc.subject	DOMESTIC INDUSTRIES
dc.subject	DOMESTIC PRICE
dc.subject	DOMESTIC PRODUCERS
dc.subject	DOMESTIC PRODUCTION
dc.subject	DOMESTIC SALES
dc.subject	DOMESTIC TAX SYSTEM
dc.subject	DOMESTIC TAXES
dc.subject	ECONOMETRICS
dc.subject	ECONOMIC POLICIES
dc.subject	ECONOMIC POLICY
dc.subject	ECONOMIC THEORY
dc.subject	ECONOMIC WELFARE
dc.subject	ELASTICITY OF SUBSTITUTION
dc.subject	ELIMINATION OF TARIFFS
dc.subject	EQUIPMENT
dc.subject	EXCHANGE RATES
dc.subject	EXCISE DUTIES
dc.subject	EXCISE TAXES
dc.subject	EXPENDITURE
dc.subject	EXPENDITURES
dc.subject	EXPORT CLAUSE
dc.subject	EXPORT PROMOTION
dc.subject	EXPORT TAXES
dc.subject	EXPORTER
dc.subject	EXPORTERS
dc.subject	EXPORTS
dc.subject	EXTERNALITIES
dc.subject	FINAL GOODS
dc.subject	FISCAL DEFICIT
dc.subject	FISCAL POLICY
dc.subject	FOREIGN EXCHANGE
dc.subject	FOREIGN PRODUCTS
dc.subject	FOREIGN TRADE
dc.subject	FREE TRADE
dc.subject	FREE TRADE AGREEMENT
dc.subject	FREE TRADE AREA
dc.subject	FREE TRADE AREAS
dc.subject	FREE TRADE ZONE
dc.subject	GDP
dc.subject	GDP PER CAPITA
dc.subject	GENERAL AGREEMENT ON TARIFFS
dc.subject	GENERAL EQUILIBRIUM
dc.subject	GENERAL EQUILIBRIUM ANALYSIS
dc.subject	GNP
dc.subject	GOVERNMENT EXPENDITURES
dc.subject	GOVERNMENT FINANCE
dc.subject	GOVERNMENT REVENUE
dc.subject	GOVERNMENT REVENUES
dc.subject	GROSS DOMESTIC PRODUCT
dc.subject	HIGH TARIFFS
dc.subject	IMPACT OF TRADE
dc.subject	IMPACT OF TRADE LIBERALIZATION
dc.subject	IMPORT DATA
dc.subject	IMPORT DUTIES
dc.subject	IMPORT DUTY
dc.subject	IMPORT FIGURES
dc.subject	IMPORT LICENSING
dc.subject	IMPORT SUBSTITUTION
dc.subject	IMPORT TARIFFS
dc.subject	IMPORT VALUE
dc.subject	IMPORTS
dc.subject	INCOME LEVELS
dc.subject	INCOME TAX
dc.subject	INCOME TAXES
dc.subject	INFLATION
dc.subject	INSTITUTIONAL CAPACITY
dc.subject	INSURANCE
dc.subject	INTEREST BURDEN
dc.subject	INTERMEDIATE GOODS
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL ECONOMICS
dc.subject	INTERNATIONAL ORGANIZATIONS
dc.subject	INTERNATIONAL STANDARD
dc.subject	INTERNATIONAL TRADE
dc.subject	LDCS
dc.subject	LEVEL OF PROTECTION
dc.subject	LEVY
dc.subject	LIBERALIZATION OF TRADE
dc.subject	LOCAL MARKET
dc.subject	LOSS OF REVENUE
dc.subject	LOSS OF TARIFF REVENUE
dc.subject	LOW TARIFFS
dc.subject	MARGINAL REVENUE
dc.subject	MARGINAL VALUE
dc.subject	MONETARY FUND
dc.subject	MOST FAVORED NATION
dc.subject	MULTILATERAL REFORMS
dc.subject	NATIONAL INCOME
dc.subject	NATURAL RESOURCES
dc.subject	OPEN ECONOMIES
dc.subject	OPEN ECONOMY
dc.subject	OPENNESS
dc.subject	PER CAPITA INCOME
dc.subject	PERSONAL INCOME
dc.subject	POLICY RESPONSES
dc.subject	POLITICAL ECONOMY
dc.subject	PREFERENTIAL RATES
dc.subject	PREFERENTIAL TARIFF
dc.subject	PREFERENTIAL TARIFF RATE
dc.subject	PRICE CHANGE
dc.subject	PRICE CHANGES
dc.subject	PRICE EFFECTS
dc.subject	PRICE ELASTICITY
dc.subject	PRICE OF IMPORTS
dc.subject	PRODUCTION EFFICIENCY
dc.subject	PRODUCTION FUNCTIONS
dc.subject	PROTECTIONIST
dc.subject	PROTECTIONIST BIAS
dc.subject	PUBLIC FINANCE
dc.subject	REGIONAL TRADE
dc.subject	RETURNS
dc.subject	TARIFF ELIMINATION
dc.subject	TARIFF EXEMPTIONS
dc.subject	TARIFF INCREASES
dc.subject	TARIFF LEVELS
dc.subject	TARIFF LINES
dc.subject	TARIFF RATE
dc.subject	TARIFF RATES
dc.subject	TARIFF REDUCTION
dc.subject	TARIFF REFORM
dc.subject	TARIFF REVENUE
dc.subject	TARIFF REVENUES
dc.subject	TARIFF STRUCTURE
dc.subject	TAX
dc.subject	TAX COLLECTION
dc.subject	TAX CREDIT
dc.subject	TAX POLICY
dc.subject	TAX RATES
dc.subject	TAX REGIME
dc.subject	TAX REVENUE
dc.subject	TAX REVENUES
dc.subject	TAX SYSTEM
dc.subject	TAXATION
dc.subject	TOTAL REVENUE
dc.subject	TRADE ADJUSTMENT
dc.subject	TRADE AGREEMENTS
dc.subject	TRADE BLOCS
dc.subject	TRADE DISTORTIONS
dc.subject	TRADE LIBERALIZATION
dc.subject	TRADE MORE
dc.subject	TRADE NEGOTIATIONS
dc.subject	TRADE POLICY
dc.subject	TRADE POLICY REFORM
dc.subject	TRADE POLICY REFORMS
dc.subject	TRADE PRACTICES
dc.subject	TRADE PROTECTION
dc.subject	TRADE REFORM
dc.subject	TRADE REFORMS
dc.subject	TRADE TAX
dc.subject	TRADE TAXES
dc.subject	TRADE VALUE
dc.subject	TRADING
dc.subject	TRADING PARTNERS
dc.subject	TRANSACTION
dc.subject	TRANSITION COUNTRIES
dc.subject	UTILITY FUNCTION
dc.subject	VALUATION
dc.subject	VALUE ADDED
dc.subject	VALUE OF IMPORTS
dc.subject	VALUE OF OUTPUT
dc.subject	WEALTH
dc.subject	WELFARE GAINS
dc.subject	WITHHOLDING TAXES
dc.subject	WORLD PRICE
dc.subject	WORLD TRADE
dc.subject	WORLD TRADE ORGANIZATION
dc.subject	WTO
dc.subject	ZERO TARIFF
dc.subject	ZERO TARIFFS
dc.title	Coordinating Tax Reforms in the Poorest Countries : Can Lost Tariffs be Recouped?
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region