Toward a More Business Friendly Tax Regime : Key Challenges in South Asia

This paper discusses competitiveness-related issues surrounding the design and administration of corporate and value added/sales taxes in four South Asian countries -- Bangladesh, India, Pakistan, and Sri Lanka. The paper is based largely on analys...

Full description

Bibliographic Details
Main Author:	Reva, Anna
Format:	Working Paper
Language:	English en_US
Published:	World Bank, Washington, DC 2015
Subjects:	TAX INCENTIVES TAX RESEARCH CAPITAL MARKETS LIABILITY SALES TAX EQUIPMENT TAX CREDIT ACCOUNTING CORPORATE INCOME TAX WAREHOUSE TAX RATES TAX EXEMPTION LANDHOLDERS PROPERTY TAX ADDED TAX USE TAX VALUE‐ ADDED TAX STOCK INFORMATION TECHNOLOGY TAX BURDENS TAX COMPLIANCE COSTS GIFTS GOVERNMENT SPENDING CONSUMPTION TAXES EXCHANGE OPTION DEVELOPING COUNTRIES TAX BASES TAX‐RATES EXPORTERS REVENUES TAX BENEFITS TAX SIMPLIFICATION TAX COMPLIANCE TAX EVASION FEDERAL TAX TAX SYSTEMS TAX INCOME TAX TAXABLE INCOME TAX LEGISLATION LEVEL PLAYING FIELD INTERNATIONAL BANK CONSUMPTION TAX DEVELOPING COUNTRY BUDGET VALUE‐ADDED TAX FOREIGN MARKETS MACROECONOMIC STABILITY SMALL BUSINESS TAX SYSTEM TAX ADMINISTRATION TAX POLICIES CURRENCY CORPORATE INCOME TAXES CORPORATE TAX RATES TAX REGIME TAX REGULATIONS TAX LIABILITIES TAX EXEMPTIONS TURNOVER TAXES MONETARY FUND VALUE ADDED TAX MARKETS RETURN TAX BASE TAX RETURNS TAX REFORM TAX BREAKS LOANS TAX REVENUES FINANCE FOREIGN CURRENCY CORPORATE TAX TAXES TAX TABLE TAX REFORMS INVESTMENT DECISIONS EXPENDITURE DOUBLE TAXATION INTERNATIONAL STANDARDS INCOME TAXES INVESTORS MACROECONOMIC INSTABILITY VALUE ADDED TAXES GOOD TAX INCENTIVE TAX RATE TRANSPARENCY TAX REVENUE COMPLIANCE COSTS TURNOVER TAX LAWS RETURNS FIXED CAPITAL TAX REGIMES GOVERNMENT EXPENDITURE TAX CONCESSIONS GOVERNMENT REVENUE INPUT TAX EXPENDITURES CORPORATE TAXES TAX EXPENDITURE TAX‐BREAKS TAX EXPENDITURES TAX LIABILITY MARKET LEVY INSURANCE TAXATION ECONOMIC DEVELOPMENT TAX LAW TAX CREDITS GOODS SECURITY LAND TAX INVESTMENT STOCK EXCHANGE INDIRECT TAXATION ADDED TAXES INVESTMENT CLIMATE DIFFERENTIAL TAX TREATMENT INVESTMENT REQUIREMENTS TAX POLICY TAX‐REVENUE TAXPAYERS REVENUE LEVIES PROFIT TAX DEDUCTIONS INVESTMENTS TAX TREATMENT DEDUCTIONS TAX PREFERENCES CAPITAL INVESTMENT PROFITS PUBLIC SPENDING LIABILITIES SMALL BUSINESSES INVESTING
Online Access:	http://documents.worldbank.org/curated/en/2015/12/25669891/toward-more-business-friendly-tax-regime-key-challenges-south-asia http://hdl.handle.net/10986/23477

Description
Summary:	This paper discusses competitiveness-related issues surrounding the design and administration of corporate and value added/sales taxes in four South Asian countries -- Bangladesh, India, Pakistan, and Sri Lanka. The paper is based largely on analysis of tax legislation; in addition, data from the World Banks enterprise surveys, the Doing Business report, as well as industry studies are used for evidence on tax compliance costs for business. The review of tax regulations in the region shows several commonalities: (1) widespread use of tax incentives to support selected industries, types of firms, and industrial locations; (2) many exemptions from value-added taxes as well as the practice of levying multiple indirect taxes on the same base; and (3) high costs of tax compliance for businesses. The paper discusses the consequences of tax policies for the competitiveness of South Asian producers, describes the main problems in tax administration, and outlines key directions for reforms.

Toward a More Business Friendly Tax Regime : Key Challenges in South Asia

Similar Items