How to Design Tax Policy in Fragile States

The purpose of this note is to provide a framework for improving tax policy design in fragile and conflict-affected states, which face political and institutional constraints. This note begins with an overview of experiences in revenue mobilization in fragile states, including relative to other coun...

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Bibliographic Details
Main Author: Mansour, Mario
Other Authors: Schneider, Jean-Luc
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2019
Series:IMF How To Notes
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Public finance & taxation 
653 |a Income tax 
653 |a Revenue administration 
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653 |a Business Taxes and Subsidies 
653 |a Revenue 
653 |a Consumption taxes 
653 |a Tax administration core functions 
653 |a Personal Income and Other Nonbusiness Taxes and Subsidies 
653 |a Taxes 
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520 |a The purpose of this note is to provide a framework for improving tax policy design in fragile and conflict-affected states, which face political and institutional constraints. This note begins with an overview of experiences in revenue mobilization in fragile states, including relative to other country groups—in particular, nonfragile states and formerly fragile states; that is, countries that exited fragility during the period under study. A discussion follows of how the principles of tax policy design should be applied in fragile states, particularly the relative importance of the revenue objective vis-à-vis other objectives, such as equity and efficiency. The two sections that follow provide guidance on tax policy design in the emergency and consolidation phases, respectively, and discuss how governments can use tax policy to transition from one phase to another, eventually overcoming fragility. The note concludes with key lessons and a set of guiding principles for tax reform in fragile states