what tax structure in developing countries

1. 
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2.  Economics of developing countries-
 M.Com. sem2

3.  “Fiscal policy refers to policy under which
govt. uses its expenditure and revenue
programmes to produce desirable effects and
avoid undesirable effects on the national
income , production and
employment”……Arthus Smithies
 Fiscal policy in short refers to budgetary
policy.

4.  Accelerating Economic Growth
 Price stability
 Reducing income inequalities
 Generating employment opportunities
 To mobilize resources
 To encourage socially optimal investment

5.  Public revenue
 Public expenditure
 Deficit financing
 Public debt

6.  The income of the government through all
sources is called public income or public
revenue. ...
 According to Dalton, however, the term
“Public Income” has two senses — wide and
narrow. In its wider sense it includes all the
incomes or receipts which a public authority
may secure during any period of time.-

9.  There are variety of taxes like direct and
indirect tax, progressive, proportional and
regressive taxes, VAT, GST,
 Purposely selected collections different
types of tax to achieve desired objective is
known as tax structure of a country.

10.  Low tax revenue as % of GDP
 High tax rate for income tax and corporate
taxes
 Absence of agricultural taxation
 tax evasion
 Regressive tax structure
 frequent changes in types of taxes and tax
rate

11.  As % GDP it is very low in developing nations
 LOW PCI
 Greater inequalities
 No tax on Agricultural sector

13. Name of countries
MALASIYA 6.4
INDIA 17.7
CHINA 21.1
AUSTRALIA 34.3
CANADA 39.8
DENMARK 50.8
NORWAY 54.8
Tax revenue % of GDP

14.  3.25 per cent in 2000-01.
 6.3 per cent in 2007-08
 5.47 per cent in 2015—16.
 Share of direct taxes to GDP touched a peak
of 6.3 per cent in 2007-08 and has since
declined to 5.47 per cent in 2015—16. It was
3.25 per cent in 2000-01…..P.M. Modiji

17.  A regressive tax structure results in low-
income individuals paying a higher
percentage of their income on taxes than
high-income individuals. A regressive tax
structure tends to shift the burden
of taxation to the poor.

19.  Taxpayers fall into one of seven brackets,
depending on their
 taxable
income: 10%, 15%, 25%, 28%, 33%,35% or 39.
6%.
 Because the U.S. tax system is a progressive
one, as income rises, increasingly higher
taxes are imposed. But those in the highest
bracket don't pay the highest rate on all their
income.
 Jan 12, 2018

22.  Every year, the world's economies lose billions of
dollars to tax avoidance. Estimates of the sheer
scale of the losses fluctuate wildly with the IMF
reporting that around $600 billion is lost due to
profit shifting every year.
 The IMF has reported that OECD countries lose
approximately 2 to 3 percent of their total annual
tax revenue while lower-income countries lose
substantially more.

23.  Corruption
 Inefficient employees
 Illiterate population
 Lack of loyalties as citizen

25.  High tax rate for income tax and corporate
taxes
 Absence of agricultural taxation
 tax evasion
 Regressive tax structure
 frequent changes in types of taxes and tax
rate

26.  Tax rate –income tax and corporate taxes
 Progressive tax system
 Promoting savings and investment
 Simple tax structure
 Govt. revenues should increase
 Tax on agriculture
 Stability in tax rate and types

27.  Explain features of tax system of developing
nations.
 What are weaknesses of tax system of
developing nations? What are the steps to
improve?