Download or read book Coordinating Tariff Reduction and Domestic Tax Reform written by Mr.Michael Keen and published by International Monetary Fund. This book was released on 1999-07-01 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt: A key obstacle to fundamental tariff reform in many developing countries is the revenue loss that it ultimately implies. This paper establishes a simple and practicable strategy for realizing the efficiency gains from tariff reform without reducing public revenues, showing that for a small open economy, a cut in tariffs combined with a point-for-point increase in domestic consumption taxes increases both welfare and public revenues. Increasingly stringent conditions are required, however, to ensure unambiguously beneficial outcomes from this reform strategy when allowance is made for such important features as nontradeable goods, intermediate inputs, and imperfect competition.

Download or read book Coordinating Tariff Reduction and Domestic Tax Reform written by Michael Keen and published by . This book was released on 2006 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt: A key obstacle to fundamental tariff reform in many developing countries is the revenue loss that it ultimately implies. This paper establishes a simple and practicable strategy for realizing the efficiency gains from tariff reform without reducing public revenues, showing that for a small open economy, a cut in tariffs combined with a point-for-point increase in domestic consumption taxes increases both welfare and public revenues. Increasingly stringent conditions are required, however, to ensure unambiguously beneficial outcomes from this reform strategy when allowance is made for such important features as nontradeable goods, intermediate inputs, and imperfect competition.

Download or read book The Coordinated Reform of Tariffs and Domestic Indirect Taxes written by Pradeep Mitra and published by World Bank Publications. This book was released on 1990 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: Tariff reform for trade liberalization must be seen as part of a broader program of tax reform. Custom duties on imports should be geared chiefly to protection. Reductions in such duties to promote an outward- oriented development strategy should be offset by increases in sales/value- added taxes applied equally to imports and domestic production. That would maintain public revenues and avoid exacerbating macroeconomic dificulties.

Download or read book Coordinating Tariff Reduction and Domestic Tax Reform Under Imperfect Competition written by Michael Keen and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Coordinating Tariffs Reduction and Domestics Tax Reform written by Michael Keen and published by . This book was released on 1999 with total page 20 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Coordinating Tax Reforms in the Poorest Countries written by Swarnim Waglé and published by . This book was released on 2011 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Welfare Improving Coordinated Tariff and Sales Tax Reforms Under Imperfect Competition written by Masayuki Okawa and published by . This book was released on 2016 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the welfare effects of coordinated domestic sales tax reform associated with a reduction of the import tariff under imperfect competition. We set up a simple oligopoly trading model where domestic and exporting firms compete in the home market. We show that, if the initial levels of import tariff and sales tax are positive, there always exist welfare-improving sales tax reforms. In some cases, a reduction of the sales tax accompanied by a reduction of the import tariff increases social welfare, whereas in other cases, raising the sales tax can increase social welfare.

Download or read book Three Essays in International Trade Theory and Policy written by Ruben Sargsyan and published by . This book was released on 2008 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Concerns over the possible loss of government revenue resulting from tariff reductions under trade liberalization have triggered many developing countries to opt for a strategy of raising destination-based consumption taxes on tradable goods. The first essay analyzes the welfare effects of a coordinated tariff reduction and domestic tax reform when the objective of a reforming country is to keep its government revenue unchanged. Assuming imperfect competition in an import-competing industry, we find that revenue-neutral reform involving tariff reduction and an increase in domestic tax rate may reduce domestic welfare under plausible assumptions. It also discusses the scenario in which the reforming country's objective is to keep domestic profit (or production) unchanged. We further identify the conditions under which a profit-neutral tariff and tax reform may be welfare-improving or welfare-deteriorating. The second essay uses a reciprocal-dumping model to examine the welfare effects of the Byrd Amendment (i.e., the Continued Dumping and Subsidy Offset Act, or CDSOA). It analyzes the differences in optimal tariffs set by the home and foreign governments when the home (i.e., the U.S.) government redistributes anti-dumping duties to its domestic firm under the new trade law, as compared to the traditional antidumping policy under which these duties are government revenues. We derive conditions under which the CDSOA may raise or lower the price of an import-competing good in the U.S. market. The results show that the CDSOA is an instrument of protectionism and strictly improves the home country welfare when markets are less competitive than in Cournot equilibrium. We find that under the same market characteristics, the new trade law strictly reduces foreign country welfare. The CDSOA's welfare effect is shown to be ambiguous, however, when markets are more competitive than Cournot. The third essay modifies the model presented in Essay 2 to allow for the scenario in which the foreign country strategically responds to the home country's CDSOA law by adopting similar trade law. The results show that the foreign country is able to enhance its national welfare when the import-competing markets are less competitive than in the Cournot equilibrium. We also discuss whether it is welfare-improving for the U.S. to voluntarily repeal the Byrd Amendment and restore the traditional antidumping policy, considering that, otherwise, its trading partner may also adopt the CDSOA law. We find that it is still in the best interest to the U.S. not to revoke the Byrd Amendment when markets are less competitive than Cournot. When markets are more competitive than Cournot, however, repealing the Amendment may turn out to be socially welfare-improving.

Download or read book Tariff and tax reform do World Bank recommendations integrate revenue and protection objectives written by Anand Rajaram and published by World Bank Publications. This book was released on 1992 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Tax Coordination Tax Competition and Revenue Mobilization in the West African Economic and Monetary Union written by Mario Mansour and published by International Monetary Fund. This book was released on 2013-07-09 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: We review the current state of the West African Economic and Monetary Union’s tax coordination framework, against the main objectives of the WAEMU Treaty of 1994: reduce distortions to intra-community trade, and mobilize domestic tax revenue. The process of tax coordination in WAEMU is one of the most advanced in the world—de jure at least—, but remains in many areas ineffective de facto. Nevertheless, the framework has, to some extent, succeeded in converging tax systems, particularly statutory tax rates, and may have contributed to improving revenue mobilisation. Important lessons can be drawn from the WAEMU experience, particularly in terms of whether coordination should take the form of harmonization through a top-down approach, or a softer approach of sharing best practice and limiting certain types of tax competition.

Download or read book Tariff tax Reforms and Market Access written by Udo Kreickemeier and published by . This book was released on 2006 with total page 13 pages. Available in PDF, EPUB and Kindle. Book excerpt: Reducing tariffs and increasing consumption taxes is a standard IMF advice to countries that want to open up their economy without hurting government finances. Indeed, theoretical analysis of such a tariff-tax reform shows an unambiguous increase in welfare and government revenues. The present paper examines whether the country that implements such a reform ends up opening up its markets to international trade, i.e. whether its market access improves. It is shown that this is not necessarily so. We also show that, comparing to the reform of only tariffs, the tariff-tax reform is a less efficient proposal to follow both as far as it concerns market access and welfare. JEL code: F13, H20. Keywords: Market access; tariff reform, consumption tax reform.

Download or read book Trade Taxes are Expensive written by Can Erbil and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the welfare implications of trade reforms in the presence of a government budget constraint. There is consensus about gains from opening up to trade. The less investigated question is, whether a coordinated tax reform, where the tariff revenue cuts are compensated with increases in distortionary domestic taxes, will still be welfare improving or not. This paper uses a CGE model to generate Marginal Cost of Funds (MCF) figures for 32 countries to answer this question. The results suggest that there are significant welfare gains from further trade liberalization, especially for developing countries.

Download or read book Revenue Mobilization in Developing Countries written by International Monetary Fund. Fiscal Affairs Dept. and published by International Monetary Fund. This book was released on 2011-08-03 with total page 86 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Fund has long played a lead role in supporting developing countries’ efforts to improve their revenue mobilization. This paper draws on that experience to review issues and good practice, and to assess prospects in this key area.

Download or read book Tariff Tax Reforms in Large Economies written by Giovanni Ganelli and published by . This book was released on 2012-05-01 with total page 61 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies tariff-tax reforms in a calibrated two-region global New Keynesian model composed of a developing and an advanced region. In our baseline calibration, a revenue-neutral reform that lowers tariffs in developing countries can reduce domestic welfare. The reason is that the increase in developing countries welfare due to higher output is dominated by the welfare losses stemming from the deterioration of the terms of trade. On the other hand, the reform increases output and welfare in the advanced countries and in the world as a whole. The effects that we highlight have not been studied in previous contributions to the literature, which typically looks at tariff-tax reforms using a small open economy framework. Nominal rigidities have important implications for adjustment dynamics in our model. In the case of a "point-for-point" reform, for example, price stickiness implies that the international dynamics of output is reversed compared to a revenue neutral reform.

Download or read book Taxation in the Global Economy written by Assaf Razin and published by University of Chicago Press. This book was released on 2008-04-15 with total page 456 pages. Available in PDF, EPUB and Kindle. Book excerpt: The increasing globalization of economic activity is bringing an awareness of the international consequences of tax policy. The move toward the common European market in 1992 raises the important question of how inefficiencies in the various tax systems—such as self-defeating tax competition among member nations—will be addressed. As barriers to trade and investment tumble, cross-national differences in tax structures may loom larger and create incentives for relocations of capital and labor; and efficient and equitable income tax systems are becoming more difficult to administer and enforce, particularly because of the growing importance of multinational enterprises. What will be the role of tax policy in this more integrated world economy? Assaf Razin and Joel Slemrod gathered experts from two traditionally distinct specialties, taxation and international economics, to lay the groundwork for understanding these issues, which will require the attention of scholars and policymakers for years to come. Contributors describe the basic provisions of the U.S. tax code with respect to international transactions, highlighting the changes contained in the U.S. Tax Reform Act of 1986; explore the ways that tax systems influence the decisions of multinationals; examine the effect of taxation on trade patterns and capital flows; and discuss the implications of the opening world economy for the design of optimal international tax policy. The papers will prove valuable not only to scholars and students, but to government economists and international tax lawyers as well.

Download or read book Tariff Tax Reforms in Large Economies written by Mr.Giovanni Ganelli and published by International Monetary Fund. This book was released on 2012-05-01 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies tariff-tax reforms in a calibrated two-region global New Keynesian model composed of a developing and an advanced region. In our baseline calibration, a revenue-neutral reform that lowers tariffs in developing countries can reduce domestic welfare. The reason is that the increase in developing countries welfare due to higher output is dominated by the welfare losses stemming from the deterioration of the terms of trade. On the other hand, the reform increases output and welfare in the advanced countries and in the world as a whole. The effects that we highlight have not been studied in previous contributions to the literature, which typically looks at tariff-tax reforms using a small open economy framework. Nominal rigidities have important implications for adjustment dynamics in our model. In the case of a "point-for-point" reform, for example, price stickiness implies that the international dynamics of output is reversed compared to a revenue neutral reform.

Download or read book Inequality and Fiscal Policy written by Mr.Benedict J. Clements and published by International Monetary Fund. This book was released on 2015-09-21 with total page 450 pages. Available in PDF, EPUB and Kindle. Book excerpt: The sizeable increase in income inequality experienced in advanced economies and many parts of the world since the 1990s and the severe consequences of the global economic and financial crisis have brought distributional issues to the top of the policy agenda. The challenge for many governments is to address concerns over rising inequality while simultaneously promoting economic efficiency and more robust economic growth. The book delves into this discussion by analyzing fiscal policy and its link with inequality. Fiscal policy is the government’s most powerful tool for addressing inequality. It affects households ‘consumption directly (through taxes and transfers) and indirectly (via incentives for work and production and the provision of public goods and individual services such as education and health). An important message of the book is that growth and equity are not necessarily at odds; with the appropriate mix of policy instruments and careful policy design, countries can in many cases achieve better distributional outcomes and improve economic efficiency. Country studies (on the Netherlands, China, India, Republic of Congo, and Brazil) demonstrate the diversity of challenges across countries and their differing capacity to use fiscal policy for redistribution. The analysis presented in the book builds on and extends work done at the IMF, and also includes contributions from leading academics.