IDEAS home Printed from https://ideas.repec.org/a/wsi/adrxxx/v40y2023i02ns0116110523500178.html
   My bibliography  Save this article

Priorities for Strengthening Key Revenue Sources in Asia

Author

Listed:
  • SANJEEV GUPTA

    (Center for Global Development, Washington, DC, United States)

  • JOÃO TOVAR JALLES

    (Lisbon School of Economics and Management, University of Lisbon, Lisbon, Portugal)

Abstract

This paper discusses the evolution of key taxes during the past 20 years in developing Asia and the fiscal challenges that the region’s economies face in light of the coronavirus disease (COVID-19) pandemic. It presents estimates of tax capacity and tax potential, and discusses the productivity of key taxes in the region. The paper finds that developing Asia has the potential to raise more revenues–reaching up to 4% of gross domestic product on average. While corporate income tax productivity is high vis-à -vis other regions, the same does not apply to personal income tax or value-added tax. There is potential in many economies to raise more revenues by improving the compliance and design of the value-added tax. It is also important to ensure that tax systems in developing Asia become more progressive with the expansion of personal income and property taxes. Increased allocations and better targeting of social spending would help offset some of the regressivity stemming from indirect taxes. An important source of revenue leakage is tax expenditures granted by economies in the region.

Suggested Citation

  • Sanjeev Gupta & Joãƒo Tovar Jalles, 2023. "Priorities for Strengthening Key Revenue Sources in Asia," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 40(02), pages 271-303, September.
    • Handle: RePEc:wsi:adrxxx:v:40:y:2023:i:02:n:s0116110523500178
    DOI: 10.1142/S0116110523500178
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0116110523500178
    Download Restriction: Open Access
    File URL: https://libkey.io/10.1142/S0116110523500178?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    More about this item

    Keywords

    income inequality; stochastic frontier analysis; tax policy; tax potential; tax reforms;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • N15 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Asia including Middle East
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:adrxxx:v:40:y:2023:i:02:n:s0116110523500178. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: https://www.worldscientific.com/worldscinet/adr .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.