Maria Delgado Coelho, Aieshwarya Davis, Mr. Alexander D Klemm, and Ms. Carolina Osorio Buitron
This paper provides an overview of the relation between tax policy and gender equality, covering labor, capital and wealth, as well as consumption taxes. It considers implicit and explicit gender biases and corrective taxation. On labor taxes, we discuss the well-established findings on female labor supply and present new empirical work on the impact of household taxation. We also analyze the impact of progressivity on pay gaps and labor supply. On capital and wealth taxation, we discuss the implications of lower effective capital income taxation on the personal income tax burden gap across genders. We show that countries with relatively low female shares of capital income and wealth also tend to tax property and inheritances particularly lightly. On consumption taxes, we cover taxes on female hygiene products and excise taxes, which we assess in relation to externalities and differences in consumption patterns across genders.
“Taxes on wealth,” writes the public finance economist Richard Bird, “… are among the oldest fiscal instruments in most countries.... [But] [d]espite their antiquity, wealthtaxation has been relatively neglected in recent years.” 12 Development economists were once very interested in the possible benefits of taxes on wealth. Lord Kaldor recommended the enactment of wealth taxes in developing countries, reflecting his belief that the holders of substantial economic resources in developing countries had the capacity to pay higher taxes than those with similar
are or are not taxed depending on the owner).
Cooperation between the TD, CED and the Ministry of Commerce (in charge of company registration) is not strong, which limits cross-checks by the TD.
A large share of the formal economy is not fully covered by the tax system. For example, garment activities, which recorded a five-fold increase between 1999 and 2006, benefit from generous incentives (tax holidays, reduced CIT tax, exemption of import duties and VAT), and incomes distributed by the sector are not properly taxed.
Wealthtaxation is minimal. A recently