The Impact of Macroeconomic Policieson the Level of Taxation (andon the Fiscal Balance) in Developing Countries
Summary:
In recent years the level of taxation of many developing countries has changed dramatically over relatively short periods. These changes are too large and too sudden to attribute fully to a deterioration in tax administration or to changes in the traditional determinants of tax levels. The paper argues that they should be attributed mostly to macroeconomic policies. The paper discusses the connection between tax levels and (a) the real value of the official exchange rate, (b) import substitution policies, (c) trade liberalization, (d) inflation, (e) public debt, (f) financial policies. The paper concludes that more attention should be paid to those relationships and that tax reform should aim at neutralizing some of these effects.
Series:
Working Paper No. 1988/095
Subject:
Exchange rates External debt Foreign exchange Imports Inflation International trade Prices Revenue administration Tariffs Taxes
English
Publication Date:
October 24, 1988
ISBN/ISSN:
9781451950236/1018-5941
Stock No:
WPIEA0951988
Pages:
28
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