Subnational Taxation in Developing Countries : A Review of the Literature

Bird, Richard M.

dc.creator	Bird, Richard M.
dc.date	2012-03-19T18:42:25Z
dc.date	2012-03-19T18:42:25Z
dc.date	2010-10-01
dc.date.accessioned	2023-02-17T21:06:12Z
dc.date.available	2023-02-17T21:06:12Z
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_20101019161844
dc.identifier	http://hdl.handle.net/10986/3933
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244903
dc.description	This paper reviews the literature on tax assignment in decentralized countries. Ideally, own-source revenues should be sufficient to enable at least the richest subnational governments to finance from their own resources all locally-provided services that primarily benefit local residents. Subnational taxes should also not unduly distort the allocation of resources. Most importantly, to the extent possible subnational governments should be accountable at the margin for financing the expenditures for which they are responsible. Although reality in most countries inevitably falls far short of these ideals, nonetheless there are several taxes that subnational governments in developing countries could use to help ensure that decentralization yields more of the benefits it appears to promise in theory. At the local level, such taxes include property taxes and, especially for larger cities, perhaps also a limited and well-designed local business tax. At the regional level, in addition to taxes on vehicles, governments in some countries may be able to utilize any or all of the following -- a payroll tax; a simple surcharge on the central personal income tax; and a sales tax, in some cases perhaps taking the form of a well-designed regional value-added tax. The "best" package for any particular country or subnational government is likely to be not only context-specific and path-dependent, but also highly sensitive to the balance struck between different political and economic factors and interests.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5450
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	ADDED TAX
dc.subject	ADDED TAXES
dc.subject	ALLOCATION OF RESOURCES
dc.subject	BENEFICIARIES
dc.subject	BETTERMENT CHARGES
dc.subject	BORROWING
dc.subject	BUDGET CONSTRAINT
dc.subject	BUSINESS TAX
dc.subject	BUSINESS TAXES
dc.subject	CAPITAL FLOWS
dc.subject	CAPITAL INVESTMENT
dc.subject	CAPITAL INVESTMENTS
dc.subject	CAPITALS
dc.subject	CENTRAL GOVERNMENT
dc.subject	CENTRAL GOVERNMENTS
dc.subject	CENTRAL REVENUES
dc.subject	CENTRAL TAXES
dc.subject	CENTRAL TRANSFERS
dc.subject	CENTRALIZING
dc.subject	CITIES
dc.subject	COASTAL PROVINCES
dc.subject	COMPARATIVE ADVANTAGE
dc.subject	COMPLIANCE COSTS
dc.subject	CONSUMPTION TAX
dc.subject	CONSUMPTION TAXES
dc.subject	CORPORATE INCOME TAX
dc.subject	CORPORATE INCOME TAXES
dc.subject	DEBT
dc.subject	DECENTRALIZATION
dc.subject	DEVELOPING COUNTRIES
dc.subject	DIFFERENTIALS
dc.subject	ECONOMIC DEVELOPMENT
dc.subject	ECONOMIC GROWTH
dc.subject	ENVIRONMENTAL TAXES
dc.subject	EQUALIZATION
dc.subject	EXCISE TAXES
dc.subject	EXPENDITURE
dc.subject	EXPENDITURE ASSIGNMENT
dc.subject	EXPENDITURE DECENTRALIZATION
dc.subject	EXPENDITURE RESPONSIBILITIES
dc.subject	EXPENDITURES
dc.subject	EXPORTERS
dc.subject	FEDERAL COUNTRIES
dc.subject	FEDERAL COUNTRY
dc.subject	FEDERAL TAX
dc.subject	FEDERALISM
dc.subject	FINANCES
dc.subject	FINANCIAL CRISIS
dc.subject	FISCAL AUTONOMY
dc.subject	FISCAL DECENTRALIZATION
dc.subject	FISCAL DISCIPLINE
dc.subject	FISCAL FEDERALISM
dc.subject	FISCAL INSTITUTIONS
dc.subject	FISCAL REFORMS
dc.subject	FISCAL RESPONSIBILITY
dc.subject	FISCAL SUSTAINABILITY
dc.subject	GOVERNORS
dc.subject	IMMOVABLE PROPERTY
dc.subject	INCOME TAXES
dc.subject	INEFFICIENT TAX
dc.subject	INFLATION
dc.subject	INSTRUMENT
dc.subject	INTERGOVERNMENTAL FINANCE
dc.subject	INTERGOVERNMENTAL FISCAL ARRANGEMENTS
dc.subject	INTERGOVERNMENTAL FISCAL RELATIONS
dc.subject	INTERGOVERNMENTAL FISCAL TRANSFERS
dc.subject	INTERGOVERNMENTAL TRANSFER
dc.subject	INTERGOVERNMENTAL TRANSFERS
dc.subject	INTERNATIONAL BANK
dc.subject	INTERNATIONAL CAPITAL
dc.subject	INVESTMENT DECISIONS
dc.subject	LAND USE
dc.subject	LEVEL OF GOVERNMENT
dc.subject	LEVIES
dc.subject	LEVY
dc.subject	LICENSES
dc.subject	LOAN
dc.subject	LOCAL AUTONOMY
dc.subject	LOCAL BUSINESS
dc.subject	LOCAL CAPACITIES
dc.subject	LOCAL CAPACITY
dc.subject	LOCAL EXPENDITURES
dc.subject	LOCAL FINANCE
dc.subject	LOCAL GOVERNMENT
dc.subject	LOCAL GOVERNMENTS
dc.subject	LOCAL PUBLIC SERVICES
dc.subject	LOCAL REVENUE
dc.subject	LOCAL SPENDING
dc.subject	LOCAL TAXATION
dc.subject	LOCAL TAXES
dc.subject	MACROECONOMIC CONTROL
dc.subject	MACROECONOMIC IMBALANCES
dc.subject	MACROECONOMIC PROBLEMS
dc.subject	MAYORS
dc.subject	MONETARY FUND
dc.subject	NATIONAL TAXES
dc.subject	NEGATIVE EXTERNALITIES
dc.subject	PAYROLL TAX
dc.subject	PAYROLL TAXES
dc.subject	PERSONAL INCOME
dc.subject	PERSONAL INCOME TAX
dc.subject	PERSONAL INCOME TAXES
dc.subject	POLICY ANALYSIS
dc.subject	POLICY CHOICES
dc.subject	POLICY OUTCOMES
dc.subject	POLICY PROCESS
dc.subject	POLITICAL ECONOMY
dc.subject	POLITICAL POWER
dc.subject	POLITICAL STABILITY
dc.subject	PORTFOLIO
dc.subject	PRIVATE SECTOR
dc.subject	PROPERTY OWNERSHIP
dc.subject	PROPERTY TAX
dc.subject	PROPERTY TAXES
dc.subject	PROVINCE
dc.subject	PROVINCES
dc.subject	PROVINCIAL GOVERNMENTS
dc.subject	PROVINCIAL SALES
dc.subject	PROVINCIAL SALES TAXES
dc.subject	PROVINCIAL TAXES
dc.subject	PUBLIC
dc.subject	PUBLIC ECONOMICS
dc.subject	PUBLIC EXPENDITURES
dc.subject	PUBLIC FINANCE
dc.subject	PUBLIC GOODS
dc.subject	PUBLIC INSTITUTIONS
dc.subject	PUBLIC REVENUES
dc.subject	PUBLIC SECTOR
dc.subject	PUBLIC SPENDING
dc.subject	REAL PROPERTY
dc.subject	REAL PROPERTY TAX
dc.subject	REAL PROPERTY TAXES
dc.subject	RESOURCE ALLOCATION
dc.subject	RETURNS
dc.subject	REVENUE ADEQUACY
dc.subject	REVENUE ASSIGNMENT
dc.subject	REVENUE ASSIGNMENTS
dc.subject	REVENUE COLLECTIONS
dc.subject	REVENUE MOBILIZATION
dc.subject	REVENUE SHARING
dc.subject	REVENUE SOURCES
dc.subject	SALES TAX
dc.subject	SALES TAXES
dc.subject	SMALL TOWNS
dc.subject	SOCIAL CAPITAL
dc.subject	STREETS
dc.subject	SUBNATIONAL
dc.subject	SUBNATIONAL AUTHORITIES
dc.subject	SUBNATIONAL EXPENDITURES
dc.subject	SUBNATIONAL FINANCE
dc.subject	SUBNATIONAL GOVERNMENT
dc.subject	SUBNATIONAL GOVERNMENT EXPENDITURE
dc.subject	SUBNATIONAL GOVERNMENT EXPENDITURES
dc.subject	SUBNATIONAL GOVERNMENTS
dc.subject	SUBNATIONAL UNITS
dc.subject	TAX
dc.subject	TAX ADMINISTRATION
dc.subject	TAX ASSIGNMENT
dc.subject	TAX AUTHORITY
dc.subject	TAX AUTONOMY
dc.subject	TAX BASE
dc.subject	TAX BASES
dc.subject	TAX BURDEN
dc.subject	TAX COMPETITION
dc.subject	TAX COMPLIANCE
dc.subject	TAX DECENTRALIZATION
dc.subject	TAX DIFFERENTIALS
dc.subject	TAX EXPORTING
dc.subject	TAX MEASURES
dc.subject	TAX OFFICIALS
dc.subject	TAX RATE
dc.subject	TAX RATES
dc.subject	TAX REVENUE
dc.subject	TAX REVENUES
dc.subject	TAX SHARING
dc.subject	TAX SHARING ARRANGEMENTS
dc.subject	TAX STRUCTURE
dc.subject	TAX SYSTEM
dc.subject	TAX TABLE
dc.subject	TAXATION
dc.subject	TAXES ON PROPERTY
dc.subject	TAXPAYERS
dc.subject	TRANSPARENCY
dc.subject	USER CHARGES
dc.subject	VALUATION
dc.title	Subnational Taxation in Developing Countries : A Review of the Literature
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region