02688cas a2200349 a 4500 AALejournalIMF022405 230101c9999 xx r poo 0 0eng d 5.00 USD 9798400201134 1018-5941 BD-DhAAL BD-DhAAL Benedek, Dora. Progress of the Personal Income Tax in Emerging and Developing Countries / Dora Benedek, Juan Carlos Benitez, Charles Vellutini. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (36 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Personal Income Tax (PIT) is one of the key sources of revenues in Advanced Economies (AEs) but plays a much more limited role in Low-Income Developing Countries (LIDCs) and Emerging Market Economies (EMEs), both in terms of revenue and redistributive impact. Notwithstanding, this paper shows that LIDCs and EMEs increased their PIT-to-GDP revenue by 110 and 48 percent, respectively, during the 1990-2019 period, a marked improvement in the PIT revenue performance. We find that this rise was driven primarily by economic developments and to a lesser extent by changes in the design of PIT systems. We also find that LIDCs that improved their tax-to-GDP ratios relied on a broader set of tax instruments and not exclusively on the PIT, suggesting that a successful revenue mobilization strategy of developing countries requires a comprehensive approach covering a wider range of taxes. Finally, using a newly assembled dataset of PIT characteristics of 157 countries over the 2006-2018 period, we estimate a novel redistribution index of the PIT in LIDCs. We show that the contribution of the PIT to inequality reductions has been significant. Mode of access: Internet Equity, Justice, Inequality, and Other Normative Criteria imf Liability Threshold imf Personal Income and Other Nonbusiness Taxes imf Personal Income Tax and Progressivity imf PIT Revenue Performance imf PIT System imf Redistribution and Low-Income Countries imf Benitez, Juan Carlos. Vellutini, Charles. IMF Working Papers; Working Paper ; No. 2022/020 Full text available on IMF http://elibrary.imf.org/view/journals/001/2022/020/001.2022.issue-020-en.xml IMF e-Library