Revenue-Increasing and Welfare-Enhancing Reform of Taxes of Exports

Posted: 25 Apr 2011

See all articles by M. Shahe Emran

M. Shahe Emran

George Washington University - Department of Economics

Date Written: April 21, 2011

Abstract

The loss of revenue from a reduction in export taxes has been a concern for trade policy reform in many developing countries. We discuss a strategy for selective reform of taxes on exports that enhances welfare and increases revenue. The strategy involves a reduction in the export tax on a given commodity with an offsetting increase in production tax to keep the producer price unchanged. This strategy is especially promising for exportables with a net subsidy on domestic consumption due to high export taxes and low consumption taxes.

Suggested Citation

Emran, M. Shahe, Revenue-Increasing and Welfare-Enhancing Reform of Taxes of Exports (April 21, 2011). Journal of Development Economics, Vol. 77, No. 1, 2005. Available at SSRN: https://ssrn.com/abstract=1818405

M. Shahe Emran (Contact Author)

George Washington University - Department of Economics ( email )

2115 G Street NW
302 Monroe Hall
Washington, DC 20052
United States

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