Political Institutions, State Building, and Tax Capacity: Crossing the Tipping Point

Gaspar, Ví­tor; Jaramillo, Laura; Wingender, Philippe

doi:10.5089/9781475558142.001

Cited by 17 publications

(18 citation statements)

References 17 publications

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“…Initial tax ratios: Episodes of tax revenue mobilization occurred with both low and high initial tax-to-GDP ratios (Figure 7). Figure 7 presents the initial tax ratio also in relation to the "tipping point" of tax revenue, around 13 percent of GDP, after which countries tend to experience higher and sustained economic growth, as defined in Gaspar et al (2016a) and Gaspar et al (2016b). For…”

Section: Duration Of Episodesmentioning

confidence: 99%

“…Note: Vertical lines represent the "tipping point" of tax revenue to GDP in Gaspar et al (2016a) and Gaspar et al (2016b), which finds that countries which achieve a tax-to-GDP rate of at least 12.75 experience sustained economic growth. Even past this tipping point, the data displays room from improvement.…”

Section: Figure 7 Initial Revenue Ratios At the Onset Of Successful mentioning

confidence: 99%

“…In recent years, there has been wider and renewed interest by many governments and multilateral institutions in enhancing tax capacity, stemming from the recognition that tax capacity is at the core of state building and development (Besley andPersson, 2009, 2010;IMF, 2011;Gaspar et. al, 2016aGaspar et.…”

Section: Introductionmentioning

confidence: 99%

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Tax Revenue Mobilization Episodes in Emerging Markets and Low-Income Countries: Lessons from a New Dataset

Akitoby¹,

Baum²,

Hackney³

et al. 2018

IMF Working Papers

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How do countries mobilize large additions to tax revenue-defined as an average increase in the tax-to-GDP ratio of 0.5 percent per year over three years or more? To answer this question, we build a novel dataset covering 55 episodes of large tax revenue increases in low-income countries and emerging markets. We find that: (i) reforms of indirect taxes and exemptions are the most common tax policy measures; (ii) multi-pronged tax administration reforms often go hand in hand with tax policy measures; and (iii) sustainability of the episodes hinges on tax administration reforms in the key compliance areas (risk-based audits, registration, filing, payment, and reporting). JEL Classification Numbers: E62, H2

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Section: Duration Of Episodesmentioning

confidence: 99%

Section: Figure 7 Initial Revenue Ratios At the Onset Of Successful mentioning

confidence: 99%

See 1 more Smart Citation

Tax Revenue Mobilization Episodes in Emerging Markets and Low-Income Countries: Lessons from a New Dataset

Akitoby¹,

Baum²,

Hackney³

et al. 2018

IMF Working Papers

View full text Add to dashboard Cite

show abstract

“…Episodes of tax revenue mobilization occurred with both low and high initial taxto-GDP ratios. Figure 6 presents the initial tax ratio also in relation to the "tipping point" of tax revenue, around 13 percent of GDP, after which countries tend to experience higher and sustained economic growth, as defined in Gaspar, Jaramillo, and Wingender (2016a) and Gaspar, Jaramillo, and Wingender (2016b). For LICs and RR countries, most large increases began while the tax-to-GDP/non-commodity revenueto-GDP ratio was below 15 percent.…”

Section: Initial Tax Ratiosmentioning

confidence: 99%

“…Initial revenue ratios at the onset of successful revenue mobilization. Note: Vertical lines represent the "tipping point" of tax revenue to GDP in Gaspar, Jaramillo, and Wingender (2016a) and Gaspar, Jaramillo, and Wingender (2016b), which finds that countries which achieve a tax-to-GDP rate of at least 12.75 experience sustained economic growth. Even past this tipping point, the data displays room from improvement.…”

Section: Tax Policy and Administration Reforms Behind Revenue Mobilizmentioning

confidence: 99%

Tax revenue mobilization episodes in developing countries

Akitoby

Baum

Hackney

et al. 2019

Policy Design and Practice

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How do countries mobilize large additions to tax revenuedefined as an average increase in the tax-to-GDP ratio of 0.5 percent per year over three years or more? To answer this question, we build a novel dataset covering 55 episodes of large tax revenue increases in low-income countries and emerging markets. We find that: (i) reforms of indirect taxes and exemptions are the most common tax policy measures; (ii) multi-pronged tax administration reforms often go hand in hand with tax policy measures; and (iii) sustainability of the episodes hinges on tax administration reforms in the key compliance areas (risk-based audits, registration, filing, payment, and reporting).

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Resource-Based Fiscal Capacity Building in Developing Countries

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Political Institutions, State Building, and Tax Capacity: Crossing the Tipping Point

Cited by 17 publications

References 17 publications

Tax Revenue Mobilization Episodes in Emerging Markets and Low-Income Countries: Lessons from a New Dataset

Tax Revenue Mobilization Episodes in Emerging Markets and Low-Income Countries: Lessons from a New Dataset

Tax revenue mobilization episodes in developing countries

Resource-Based Fiscal Capacity Building in Developing Countries

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