Expanding Taxable Capacity and Reaching Revenue Potential : Cross-Country Analysis

An effective tax system is fundamental for successful country development. The first step to understand public revenue systems is to establish some commonly agreed performance measurements and benchmarks. This paper employs a cross-country study t...

Full description

Bibliographic Details
Main Authors:	Le, Tuan Minh, Moreno-Dodson, Blanca, Rojchaichaninthorn, Jeep
Format:	Policy Research Working Paper
Language:	English
Published:	World Bank, Washington, DC 2012
Subjects:	ACCOUNTING AGRICULTURE BENCHMARK BENCHMARKING BENCHMARKS BUDGET DEFICITS BUREAUCRATIC QUALITY BUSINESS CLIMATE CAPITAL MOBILITY COMPLIANCE COSTS CONSUMPTION TAXES COUNTRY DEVELOPMENT COUNTRY RISK CURRENCY DEDUCTIONS DEMOGRAPHIC DEVELOPING COUNTRIES ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC STRUCTURE ECONOMIC STRUCTURES EQUATIONS EVASION EXPENDITURE EXPORTS FISCAL POLICIES FISCAL POLICY GDP GDP PER CAPITA GLOBALIZATION GNP GOOD GOVERNANCE GOVERNMENT FINANCE GOVERNMENT REVENUES GROSS DOMESTIC PRODUCT GROSS VALUE GROWTH RATE GROWTH RATES HUMAN DEVELOPMENT INCOME GROUP INCOME GROUPS INCOME LEVEL INCOME TAXES INCOMES INFORMAL ECONOMY INTERNATIONAL BANK INTERNATIONAL BEST PRACTICES INTERNATIONAL COMPETITION INTERNATIONAL TRADE LOW-INCOME COUNTRIES MACROECONOMIC STABILIZATION MARKET PRICES MIDDLE EAST MIDDLE INCOME COUNTRIES MIDDLE-INCOME COUNTRIES MONETARY FUND NATURAL RESOURCES NORTH AFRICA NUMERICAL VALUE OPEN ECONOMIES OUTPUT OUTPUTS PARTICULAR COUNTRY PER CAPITA INCOME PERFORMANCE MEASURES POLITICAL DETERMINANTS POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY POLITICAL SYSTEM PRODUCT TAXES PUBLIC PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FUNDS PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SPENDING REFORM PROGRAM REVENUE CAPACITY REVENUE COLLECTION REVENUE PERFORMANCE REVENUE REFORM RISK ASSESSMENTS RULE OF LAW SUB-SAHARAN AFRICA TAX TAX ADMINISTRATION TAX AVOIDANCE TAX BASE TAX BURDENS TAX COLLECTION TAX COLLECTIONS TAX COMPLIANCE TAX COORDINATION TAX EXPENDITURES TAX INCENTIVES TAX INCIDENCE TAX POLICIES TAX POLICY TAX PROVISIONS TAX RATES TAX REFORM TAX REFORMS TAX REGIME TAX REGIMES TAX REVENUE TAX REVENUES TAX STRUCTURE TAX STRUCTURES TAX SYSTEM TAX SYSTEMS TAX WEDGE TAXABLE INCOME TAXATION TAXPAYER SERVICE TAXPAYERS TRADE TAXES TRINIDAD AND TOBAGO URBANIZATION VALUE ADDED VALUE ADDED TAX WAGES WORLD DEVELOPMENT INDICATORS
Online Access:	http://documents.worldbank.org/curated/en/2008/03/9080661/expanding-taxable-capacity-reaching-revenue-potential-cross-country-analysis http://hdl.handle.net/10986/6565

id	okr-10986-6565
recordtype	oai_dc
spelling	okr-10986-65652021-04-23T14:02:31Z Expanding Taxable Capacity and Reaching Revenue Potential : Cross-Country Analysis Le, Tuan Minh Moreno-Dodson, Blanca Rojchaichaninthorn, Jeep ACCOUNTING AGRICULTURE BENCHMARK BENCHMARKING BENCHMARKS BUDGET DEFICITS BUREAUCRATIC QUALITY BUSINESS CLIMATE CAPITAL MOBILITY COMPLIANCE COSTS CONSUMPTION TAXES COUNTRY DEVELOPMENT COUNTRY RISK CURRENCY DEDUCTIONS DEMOGRAPHIC DEVELOPING COUNTRIES ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC STRUCTURE ECONOMIC STRUCTURES EQUATIONS EVASION EXPENDITURE EXPORTS FISCAL POLICIES FISCAL POLICY GDP GDP PER CAPITA GLOBALIZATION GNP GOOD GOVERNANCE GOVERNMENT FINANCE GOVERNMENT REVENUES GROSS DOMESTIC PRODUCT GROSS VALUE GROWTH RATE GROWTH RATES HUMAN DEVELOPMENT INCOME GROUP INCOME GROUPS INCOME LEVEL INCOME TAXES INCOMES INFORMAL ECONOMY INTERNATIONAL BANK INTERNATIONAL BEST PRACTICES INTERNATIONAL COMPETITION INTERNATIONAL TRADE LOW-INCOME COUNTRIES MACROECONOMIC STABILIZATION MARKET PRICES MIDDLE EAST MIDDLE INCOME COUNTRIES MIDDLE-INCOME COUNTRIES MONETARY FUND NATURAL RESOURCES NORTH AFRICA NUMERICAL VALUE OPEN ECONOMIES OUTPUT OUTPUTS PARTICULAR COUNTRY PER CAPITA INCOME PERFORMANCE MEASURES POLITICAL DETERMINANTS POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY POLITICAL SYSTEM PRODUCT TAXES PUBLIC PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FUNDS PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SPENDING REFORM PROGRAM REVENUE CAPACITY REVENUE COLLECTION REVENUE PERFORMANCE REVENUE REFORM RISK ASSESSMENTS RULE OF LAW SUB-SAHARAN AFRICA TAX TAX ADMINISTRATION TAX AVOIDANCE TAX BASE TAX BURDENS TAX COLLECTION TAX COLLECTIONS TAX COMPLIANCE TAX COORDINATION TAX EXPENDITURES TAX INCENTIVES TAX INCIDENCE TAX POLICIES TAX POLICY TAX PROVISIONS TAX RATES TAX REFORM TAX REFORMS TAX REGIME TAX REGIMES TAX REVENUE TAX REVENUES TAX STRUCTURE TAX STRUCTURES TAX SYSTEM TAX SYSTEMS TAX WEDGE TAXABLE INCOME TAXATION TAXPAYER SERVICE TAXPAYERS TRADE TAXES TRINIDAD AND TOBAGO URBANIZATION VALUE ADDED VALUE ADDED TAX WAGES WORLD DEVELOPMENT INDICATORS An effective tax system is fundamental for successful country development. The first step to understand public revenue systems is to establish some commonly agreed performance measurements and benchmarks. This paper employs a cross-country study to estimate tax capacity from a sample of 104 countries during 1994-2003. The estimation results are then used as benchmarks to compare taxable capacity and tax effort in different countries. Taxable capacity refers to the predicted tax-gross domestic product ratio that can be estimated with the regression, taking into account a country's specific economic, demographic, and institutional features. Tax effort is defined as an index of the ratio between the share of the actual tax collection in gross domestic product and the predicted taxable capacity. The authors classify countries into four distinct groups by their level of actual tax collection and attained tax effort. This classification is based on the benchmark of the global average of tax collection and a tax effort index of 1 (when tax collection is exactly the same as the estimated taxable capacity). The analysis provides guidance for countries with various levels of tax collection and tax effort. 2012-05-29T17:32:47Z 2012-05-29T17:32:47Z 2008-03 http://documents.worldbank.org/curated/en/2008/03/9080661/expanding-taxable-capacity-reaching-revenue-potential-cross-country-analysis http://hdl.handle.net/10986/6565 English Washington, DC: World Bank 4559 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	ACCOUNTING AGRICULTURE BENCHMARK BENCHMARKING BENCHMARKS BUDGET DEFICITS BUREAUCRATIC QUALITY BUSINESS CLIMATE CAPITAL MOBILITY COMPLIANCE COSTS CONSUMPTION TAXES COUNTRY DEVELOPMENT COUNTRY RISK CURRENCY DEDUCTIONS DEMOGRAPHIC DEVELOPING COUNTRIES ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC STRUCTURE ECONOMIC STRUCTURES EQUATIONS EVASION EXPENDITURE EXPORTS FISCAL POLICIES FISCAL POLICY GDP GDP PER CAPITA GLOBALIZATION GNP GOOD GOVERNANCE GOVERNMENT FINANCE GOVERNMENT REVENUES GROSS DOMESTIC PRODUCT GROSS VALUE GROWTH RATE GROWTH RATES HUMAN DEVELOPMENT INCOME GROUP INCOME GROUPS INCOME LEVEL INCOME TAXES INCOMES INFORMAL ECONOMY INTERNATIONAL BANK INTERNATIONAL BEST PRACTICES INTERNATIONAL COMPETITION INTERNATIONAL TRADE LOW-INCOME COUNTRIES MACROECONOMIC STABILIZATION MARKET PRICES MIDDLE EAST MIDDLE INCOME COUNTRIES MIDDLE-INCOME COUNTRIES MONETARY FUND NATURAL RESOURCES NORTH AFRICA NUMERICAL VALUE OPEN ECONOMIES OUTPUT OUTPUTS PARTICULAR COUNTRY PER CAPITA INCOME PERFORMANCE MEASURES POLITICAL DETERMINANTS POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY POLITICAL SYSTEM PRODUCT TAXES PUBLIC PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FUNDS PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SPENDING REFORM PROGRAM REVENUE CAPACITY REVENUE COLLECTION REVENUE PERFORMANCE REVENUE REFORM RISK ASSESSMENTS RULE OF LAW SUB-SAHARAN AFRICA TAX TAX ADMINISTRATION TAX AVOIDANCE TAX BASE TAX BURDENS TAX COLLECTION TAX COLLECTIONS TAX COMPLIANCE TAX COORDINATION TAX EXPENDITURES TAX INCENTIVES TAX INCIDENCE TAX POLICIES TAX POLICY TAX PROVISIONS TAX RATES TAX REFORM TAX REFORMS TAX REGIME TAX REGIMES TAX REVENUE TAX REVENUES TAX STRUCTURE TAX STRUCTURES TAX SYSTEM TAX SYSTEMS TAX WEDGE TAXABLE INCOME TAXATION TAXPAYER SERVICE TAXPAYERS TRADE TAXES TRINIDAD AND TOBAGO URBANIZATION VALUE ADDED VALUE ADDED TAX WAGES WORLD DEVELOPMENT INDICATORS
spellingShingle	ACCOUNTING AGRICULTURE BENCHMARK BENCHMARKING BENCHMARKS BUDGET DEFICITS BUREAUCRATIC QUALITY BUSINESS CLIMATE CAPITAL MOBILITY COMPLIANCE COSTS CONSUMPTION TAXES COUNTRY DEVELOPMENT COUNTRY RISK CURRENCY DEDUCTIONS DEMOGRAPHIC DEVELOPING COUNTRIES ECONOMIC DEVELOPMENT ECONOMIC EFFICIENCY ECONOMIC STRUCTURE ECONOMIC STRUCTURES EQUATIONS EVASION EXPENDITURE EXPORTS FISCAL POLICIES FISCAL POLICY GDP GDP PER CAPITA GLOBALIZATION GNP GOOD GOVERNANCE GOVERNMENT FINANCE GOVERNMENT REVENUES GROSS DOMESTIC PRODUCT GROSS VALUE GROWTH RATE GROWTH RATES HUMAN DEVELOPMENT INCOME GROUP INCOME GROUPS INCOME LEVEL INCOME TAXES INCOMES INFORMAL ECONOMY INTERNATIONAL BANK INTERNATIONAL BEST PRACTICES INTERNATIONAL COMPETITION INTERNATIONAL TRADE LOW-INCOME COUNTRIES MACROECONOMIC STABILIZATION MARKET PRICES MIDDLE EAST MIDDLE INCOME COUNTRIES MIDDLE-INCOME COUNTRIES MONETARY FUND NATURAL RESOURCES NORTH AFRICA NUMERICAL VALUE OPEN ECONOMIES OUTPUT OUTPUTS PARTICULAR COUNTRY PER CAPITA INCOME PERFORMANCE MEASURES POLITICAL DETERMINANTS POLITICAL ECONOMY POLITICAL RISK POLITICAL STABILITY POLITICAL SYSTEM PRODUCT TAXES PUBLIC PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FUNDS PUBLIC GOODS PUBLIC INFRASTRUCTURE PUBLIC INVESTMENT PUBLIC SECTOR PUBLIC SPENDING REFORM PROGRAM REVENUE CAPACITY REVENUE COLLECTION REVENUE PERFORMANCE REVENUE REFORM RISK ASSESSMENTS RULE OF LAW SUB-SAHARAN AFRICA TAX TAX ADMINISTRATION TAX AVOIDANCE TAX BASE TAX BURDENS TAX COLLECTION TAX COLLECTIONS TAX COMPLIANCE TAX COORDINATION TAX EXPENDITURES TAX INCENTIVES TAX INCIDENCE TAX POLICIES TAX POLICY TAX PROVISIONS TAX RATES TAX REFORM TAX REFORMS TAX REGIME TAX REGIMES TAX REVENUE TAX REVENUES TAX STRUCTURE TAX STRUCTURES TAX SYSTEM TAX SYSTEMS TAX WEDGE TAXABLE INCOME TAXATION TAXPAYER SERVICE TAXPAYERS TRADE TAXES TRINIDAD AND TOBAGO URBANIZATION VALUE ADDED VALUE ADDED TAX WAGES WORLD DEVELOPMENT INDICATORS Le, Tuan Minh Moreno-Dodson, Blanca Rojchaichaninthorn, Jeep Expanding Taxable Capacity and Reaching Revenue Potential : Cross-Country Analysis
relation	Washington, DC: World Bank 4559
description	An effective tax system is fundamental for successful country development. The first step to understand public revenue systems is to establish some commonly agreed performance measurements and benchmarks. This paper employs a cross-country study to estimate tax capacity from a sample of 104 countries during 1994-2003. The estimation results are then used as benchmarks to compare taxable capacity and tax effort in different countries. Taxable capacity refers to the predicted tax-gross domestic product ratio that can be estimated with the regression, taking into account a country's specific economic, demographic, and institutional features. Tax effort is defined as an index of the ratio between the share of the actual tax collection in gross domestic product and the predicted taxable capacity. The authors classify countries into four distinct groups by their level of actual tax collection and attained tax effort. This classification is based on the benchmark of the global average of tax collection and a tax effort index of 1 (when tax collection is exactly the same as the estimated taxable capacity). The analysis provides guidance for countries with various levels of tax collection and tax effort.
format	Publications & Research :: Policy Research Working Paper
author	Le, Tuan Minh Moreno-Dodson, Blanca Rojchaichaninthorn, Jeep
author_facet	Le, Tuan Minh Moreno-Dodson, Blanca Rojchaichaninthorn, Jeep
author_sort	Le, Tuan Minh
title	Expanding Taxable Capacity and Reaching Revenue Potential : Cross-Country Analysis
title_short	Expanding Taxable Capacity and Reaching Revenue Potential : Cross-Country Analysis
title_full	Expanding Taxable Capacity and Reaching Revenue Potential : Cross-Country Analysis
title_fullStr	Expanding Taxable Capacity and Reaching Revenue Potential : Cross-Country Analysis
title_full_unstemmed	Expanding Taxable Capacity and Reaching Revenue Potential : Cross-Country Analysis
title_sort	expanding taxable capacity and reaching revenue potential : cross-country analysis
publisher	World Bank, Washington, DC
publishDate	2012
url	http://documents.worldbank.org/curated/en/2008/03/9080661/expanding-taxable-capacity-reaching-revenue-potential-cross-country-analysis http://hdl.handle.net/10986/6565
_version_	1764400508331622400

Expanding Taxable Capacity and Reaching Revenue Potential : Cross-Country Analysis

Similar Items