Tax Farming: A Radical Solution for Developing Country Tax Problems?
September 1, 1992
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Order a Print CopyDisclaimer: 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
Systemic tax administration problems in many developing countries have led to a search for radical solutions. One such proposed solution is tax farming. Tax farming is a system wherein the right to collect taxes is auctioned off to the highest bidder. An analysis of the historical experience with tax farming shows that its purported administrative efficiency is largely illusory. While certain aspects of tax administration may be suitable for privatization, the classic form of tax farming would appear to have little attraction for a modern state concerned with justice and equity.
Subject: Agricultural tax, Financial institutions, Loans, Revenue administration, Tax administration core functions, Tax collection, Tax incentives, Tax law, Tax policy, Taxes
Keywords: Agricultural tax, credit problem, government collection, government relationship, government salary schedule, government's objective, Loans, North Africa, Tax administration core functions, Tax collection, tax collector, tax farming, Tax law, WP
Pages:
26
Volume:
1992
DOI:
Issue:
070
Series:
Working Paper No. 1992/070
Stock No:
WPIEA0701992
ISBN:
9781451960327
ISSN:
1018-5941
Notes
Also published in Staff Papers, Vol. 40, No. 1, March 1993.
