Subnational Taxes in Developing Countries: The Way Forward

Institute for International Business Working Paper No. 16

36 Pages Posted: 29 Sep 2008

See all articles by Roy W. Bahl

Roy W. Bahl

Georgia State University - Andrew Young School of Policy Studies

Richard M. Bird

affiliation not provided to SSRN

Date Written: September, 25 2008

Abstract

This paper reviews the literature and evidence on the most appropriate structure of regional and local taxes in developing countries. A good subnational tax system is critical to an effective and sustainable system of intergovernmental fiscal relations - a need that has become increasingly important around the world as more and more public services are being delivered through subnational governments. In most developing countries potentially sound and productive taxes exist that are suitable for regional and local governments: property taxes, taxes on motor vehicles, surcharges on national personal income taxes, payroll taxes, and even, in some cases, regional value added taxes and properly designed local business taxes.

Keywords: local taxes, regional taxes, fiscal decentralization, developing countries

JEL Classification: H71, H77, O23

Suggested Citation

Bahl, Roy W. and Bird, Richard Miller, Subnational Taxes in Developing Countries: The Way Forward (September, 25 2008). Institute for International Business Working Paper No. 16, Available at SSRN: https://ssrn.com/abstract=1273753 or http://dx.doi.org/10.2139/ssrn.1273753

Roy W. Bahl

Georgia State University - Andrew Young School of Policy Studies ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States

Richard Miller Bird (Contact Author)

affiliation not provided to SSRN

No Address Available

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