Reform of Indirect Taxes in Developing Countries: Selected Issues

Tax reform is almost universal and it has taken a prominent place in the agenda of many governments. In developing countries alone, there have been over 100 identifiable attempts at major tax reform since the mid-1940s. The pace of reforms, particularly in developing countries, has accelerated in recent years mainly due to the increasing realization of the need to make the tax systems simpler, more transparent, less distorting and broad based. Although the directions for reforming taxes and the success of tax reforms depend upon the particular country situation, the analysis of the experiences can immensely help in formulating appropriate strategies to raise the required revenues in an efficient and equitable manner…