Maldives: Technical Assistance Report—Estimating Tax Expenditures
IMF Staff Country Reports, October 20, 2021
Source details
- Canonical URL
- Maldives: Technical Assistance Report—Estimating Tax Expenditures
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Bibliographic details
- Published: October 20, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781557755131.002
Summary
- The Maldives has identified the estimation and regular reporting of tax expenditures (TEs) as one of the top priority areas in continuing its tax modernization process.
- TEs are alternative policy tools (e.g., to direct transfers and other spending measures) in the form of provisions in the tax legislation that modify the tax liability of individuals or companies.
- The cost of TEs should be identified, measured, and publicly reported to improve transparency in fiscal management.
Major themes and findings
- Tax expenditure identification and measurement are central to fiscal transparency and modernization in the Maldives.
- Regular public reporting of TE costs is recommended to improve transparency in fiscal management.
- TEs function as alternative policy instruments to direct transfers and other spending measures by altering tax liabilities.
Policy recommendations and implications
- Establish procedures to identify and measure the cost of tax expenditures.
- Implement regular public reporting on tax expenditures to enhance fiscal transparency.
- Treat tax expenditures as part of the fiscal policy toolkit alongside direct transfers and spending measures, recognizing their budgetary implications.
Publication and metadata
- Publication title: Maldives: Technical Assistance Report—Estimating Tax Expenditures
- Publication date: October 20, 2021
- Series: Country Report No. 2021/234
- Issue: 234
- Volume: 2021
- Pages: 41
- DOI: https://doi.org/10.5089/9781557755131.002
- Stock No: 1MDVEA2021002
- ISBN: 9781557755131
- ISSN: 1934-7685
- Format: IMF Staff Country Reports
Subjects and keywords
- Subject: Consumption taxes, Corporate income tax, International organization, Monetary policy, Personal income tax, Tax allowances, Taxes, Value-added tax
- Keywords: business profit tax data, business profit Tax Expenditure, business profit taxpayer, Consumption taxes, Corporate income tax, memo item, Model structure, Personal income tax, Tax allowances, Value-added tax
International Monetary Fund. Fiscal Affairs Dept. "Maldives: Technical Assistance Report—Estimating Tax Expenditures", IMF Staff Country Reports 2021, 234 (2021).
Content in this bundle
- 1mdvea2021002