The BBLR Approach to Tax Reform in Emerging Countries
28 Pages Posted: 29 Sep 2008
Date Written: September, 25 2008
Fiscal experts have for years proposed a holy trinity of tax reform options for developing countries: broader bases, lower rates, and better administration. The review in this paper of fifty years of experience suggests that what might be called the BBLR approach - broader bases and lower rates - to tax structure reform holds up fairly well. Nonetheless, some qualifications to the basic BBLR approach are suggested and the continuing fundamental importance of understanding and improving tax administration is stressed.
Keywords: tax reform, tax bases, tax rates, tax administration
JEL Classification: H20, O23, P41
Suggested Citation: Suggested Citation