Subnational Taxation in Large Emerging Countries: BRIC Plus One
AbstractThis paper reviews the evolution and current state of subnational taxation in five large emerging countries: Brazil, Russia, India, China, and Nigeria—BRIC plus one. As these case studies show, intergovernmental fiscal relations in any country are inevitably both path-dependent and context-sensitive. In India and Brazil, for example, subnational governments already have a significant degree of fiscal autonomy in being able to set some key tax rates. In both countries, however, substantial attention still must be paid to improving the general consumption taxes that are the main source of regional government revenues as well as the property taxes on which local governments mainly depend. Although Nigeria, like India and Brazil, is a federation, its fiscal system depends so heavily on oil revenues that almost all political attention has been focused on securing a bigger share of these revenues. Both China and Russia have made important changes in the direction of centralizing rather than decentralizing effective control over subnational taxes. In both countries, the key issue is the extent to which fiscal decentralization is to be accompanied by significant political decentralization. At present, in neither China nor Russia is it clear that the central authorities are willing to permit subnational governments much autonomy in this respect.
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Bibliographic InfoPaper provided by University of Toronto, Institute on Municipal Finance and Governance in its series IMFG Papers with number 06.
Length: 50 pages
Date of creation: Mar 2012
Date of revision:
Publication status: Published in hard copy and online
state and local taxation; intergovernmental fiscal relations; Brazil; Russia; India; China; Nigeria;
Other versions of this item:
- Richard M. Bird, 2012. "Subnational Taxation in Large Emerging Countries: BRIC Plus One," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1201, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
- H71 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Taxation, Subsidies, and Revenue
- H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
- P35 - Economic Systems - - Socialist Institutions and Their Transitions - - - Public Finance
- P43 - Economic Systems - - Other Economic Systems - - - Finance; Public Finance
This paper has been announced in the following NEP Reports:
- NEP-ACC-2012-07-14 (Accounting & Auditing)
- NEP-ALL-2012-07-14 (All new papers)
- NEP-CIS-2012-07-14 (Confederation of Independent States)
- NEP-PBE-2012-07-14 (Public Economics)
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