Cover IMF How To Notes
How to Design Tax Policy in Fragile States
Author: Mario Mansour and Mr. Jean-Luc Schneider
Series:
IMF How To Notes
Volume/Issue:
Volume 2019: Issue 004
Language:
English
Publication Date:
20 Sep 2019
DOI:
https://0-doi-org.library.svsu.edu/10.5089/9781513508153.061
ISBN:
9781513508153
ISSN:
2522-7912
Pages:
29
Keywords:
FADHTN; HTN; tax; firm; government; country; fragile state; control capacity; tax deductibility; business organization; customs duty; license sale; tax provision; harder-to-administer tax; tax inclusiveness; revenue-enhancing tax reform; tax concession; border tax; Consumption taxes; Personal income tax; Tax administration core functions; Value-added tax; West Africa; Global
Legal-disclaimer:
Fiscal Affairs Department (FAD) How to Notes offer practical advice from IMF staff members to policymakers on important fiscal issues. The views expressed in FAD How to Notes are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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The purpose of this note is to provide a framework for improving tax policy design in fragile and conflict-affected states, which face political and institutional constraints. This note begins with an overview of experiences in revenue mobilization in fragile states, including relative to other country groups—in particular, nonfragile states and formerly fragile states; that is, countries that exited fragility during the period under study. A discussion follows of how the principles of tax policy design should be applied in fragile states, particularly the relative importance of the revenue objective vis-à-vis other objectives, such as equity and efficiency. The two sections that follow provide guidance on tax policy design in the emergency and consolidation phases, respectively, and discuss how governments can use tax policy to transition from one phase to another, eventually overcoming fragility. The note concludes with key lessons and a set of guiding principles for tax reform in fragile states.
Cover IMF How To Notes
IMF How To Notes
ISSN:
2522-7912
Publisher:
International Monetary Fund