The Theory and Practice of Tax Reform in Developing Countries [Paperback]

This 1991 study approaches the subject of tax reform from basic economic principles.Approaching tax reform from basic economic principles, this study develops guidelines for policy design and demonstrates how they can be applied to a practical program for Pakistan, where tax reform has become an urgent priority.Approaching tax reform from basic economic principles, this study develops guidelines for policy design and demonstrates how they can be applied to a practical program for Pakistan, where tax reform has become an urgent priority.This study approaches the subject of tax reform from basic economic principles. The objectives are to develop guidelines for the design of tax policy; to show how the principles can structure systematic research into tax reform in terms of the consequences for households, producers and government; and finally, to combine the guidelines and applied research into a practical tax package for Pakistan, where tax reform has become an urgent priority. Professors Ahmad and Stern provide a coherent framework to show how principles can be formulated, applied research structured, and policies developed and appraised in a systematic manner. The careful application of the ideas presented here should lead to a real improvement in the development of policy and to further empirical and theoretical research.Preface; 1. Issues and methods; 2. The structure of taxation in Pakistan and its historical background; 3. Theory; 4. The taxation of agriculture: theoretical issues; 5. Applying the theory; 6. Effective taxes and shadow prices in Pakistan; 7. The reform of indirect taxes in Pakistan; 8. The taxation of land in Pakistan; 9. International contrasts; 10. Alternative sources of revenue Pakistan; Conclusions; References; Index.