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Tariff Rates, Tariff Revenue, and Tariff Reform: Some New Facts

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  • Pritchett, Lant
  • Sethi, Geeta

Abstract

This article compares the statutory ad valorem tariff rates (official rates) with the ratio of tariff revenues to import values (collected rates) for Jamaica, Kenya, and Pakistan. It identifies four general features of the tariff codes, considers whether these features apply to all developing countries and discusses four implications of these features for tariff reform. First, the collected rate for any given item in the tariff code is only weakly related to the official rate for that item. Second, the variation of collected rates around the official rate increases with the level of the official rate. Third, the collected rates, on average, increease much less than the official rates. Fourth, the relation between official rates and collecte drates in nonlinear, because the slope is lower at higher levels of the official rate. Copyright 1994 by Oxford University Press.

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Bibliographic Info

Article provided by World Bank Group in its journal World Bank Economic Review.

Volume (Year): 8 (1994)
Issue (Month): 1 (January)
Pages: 1-16

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Handle: RePEc:oup:wbecrv:v:8:y:1994:i:1:p:1-16

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  1. Julio Nogues & Sunil Gulati, 1994. "Economic Policies and Performance Under Alternative Trade Regimes: Latin America During the 1980s," The World Economy, Wiley Blackwell, vol. 17(4), pages 467-496, 07.
  2. Mitra, Pradeep, 1992. "The Coordinated Reform of Tariffs and Indirect Taxes," World Bank Research Observer, World Bank Group, vol. 7(2), pages 195-218, July.
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