The Taxation Implicit in Two-Tiered Exchange Rate Systems

Author/Editor:

Harry Huizinga

Publication Date:

November 1, 1996

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:

A two-tiered exchange rate system can be interpreted as a set of separate taxes on money and other financial assets. If the official two-tiered exchange rate system coexists with a black market for foreign exchange, then there is implicit taxation of the international goods trade as well. This paper presents some evidence on the tax rates and tax revenues implicit in the exchange rate systems of The Bahamas (from 1978 to 1995), the Dominican Republic (from 1970 to 1984), and South Africa (from 1973 to 1995).

Series:

Working Paper No. 96/120

Subject(s):

English

Publication Date:

November 1, 1996

ISBN/ISSN:

9781451854220/1018-5941

Stock No:

WPIEA1201996

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

26

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