Rethinking Subnational Taxes : A New Look At Tax Assignment

Author/Editor:

Richard Miller Bird

Publication Date:

December 1, 1999

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

The assignment of revenues in most developing and transitional countries to the central government has arguably facilitated irresponsible behavior by some subnational governments. One way to relieve this problem is to strengthen subnational tax regimes. The paper proposes two approaches to accomplish such strengthening in developing countries. The first—most applicable to large countries with important regional governments—is to establish subnational value-added taxes (VATs); the second is to replace the various unsatisfactory state and local taxes imposed on business by a low-rate value-added tax levied on the basis of income (production, origin) rather than consumption (destination).

Series:

Working Paper No. 99/165

English

Publication Date:

December 1, 1999

ISBN/ISSN:

9781451858037/1018-5941

Stock No:

WPIEA1651999

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

54

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