Indirect Taxation in Developing Countries: A General Equilibrium Approach

September 1, 1986

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Format: Chicago

Ary Lars Bovenberg. Indirect Taxation in Developing Countries: A General Equilibrium Approach, (USA: International Monetary Fund, 1986) accessed September 19, 2024

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

Indirect taxes are an important element in stabilization tax packages that aim at raising revenue in the short run. This paper evaluates, by using a general equilibrium model, alternative instruments of indirect taxation in middle-income developing countries. It uses data for Thailand as an illustration and examines the effects on revenue, efficiency, equity, and international competitiveness. The paper shows that the interaction between taxes and distortions caused by various policies can be important for revenue and efficiency. It also reveals significant backward shifting and a link between outward-looking supply-side tax policies and trade policies in industrial countries.

Subject: National accounts, Taxes

Keywords: Consumption, Consumption goods, Consumption taxes, Demand price, Global, Goods decline, Income, Income effect, Intermediate goods, Intermediate-goods industry, Investment goods, Laffer curve, Nonexempt goods decrease, Sector benefit, Tariffs, Taxes on trade, Trade tax, WP, Zero rating

Publication Details

Pages:

44
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1986/001
Stock No:

WPIEA0011986
ISBN:

9781451931143
ISSN:

1018-5941

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