Coordinating Tariff Reduction and Domestic Tax Reform /

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 econ...

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Detalhes bibliográficos
Autor principal: Keen, Michael
Outros Autores: Ligthart, Jenny
Formato: Periódico
Idioma:English
Publicado em: Washington, D.C. : International Monetary Fund, 1999.
Colecção:IMF Working Papers; Working Paper ; No. 1999/093
Acesso em linha:Full text available on IMF
Descrição
Resumo: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.
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Descrição Física:1 online resource (20 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
Acesso:Electronic access restricted to authorized BRAC University faculty, staff and students