Tax Policy and Tax Reform in Semi-Industrial Countries. Volume 13

摘要

The main objectives of the report are to review tax policy as implemented in developing countries, to examine the problems that arise and to explore potential avenues for tax reform. The analysis is drawn from a sample of four semi-industrial countries: Colombia, the Republic of Korea, Mexico and Thailand. Among the major issues identified are: (a) savings and investment disincentives, which arise from the high rates and sharp graduation in income-based taxes; (b) intersectoral variation in effective tax rates, which emanates mainly from selective industrial promotion; and (c) trade distortions, which are attributable to the discriminatory treatment of imports and the tax-induced changes in comparative costs. (Copyright (c) The International Bank for Reconstruction and Development/The World Bank, 1986.)