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Asia and Pacific > India

You are looking at 1 - 10 of 44 items for :

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Cover IMF Working Papers
Taxing Cryptocurrencies
Ms. Katherine Baer
,
Ruud A. de Mooij
,
Mr. Shafik Hebous
, and
Mr. Michael Keen
Policymakers are struggling to accommodate cryptocurrencies within tax systems not designed to handle them; this paper reviews the issues that arise. The greatest challenges are for implementation: crypto’s quasi-anonymity is an inherent obstacle to third-party reporting. Design problems arise from cryptocurrencies’ dual nature as investment assets and means of payment: more straightforward is a compelling case for corrective taxation of carbon-intensive mining. Ownership is highly concentrated at the top, but many crypto investors have only moderate incomes. The capital gains tax revenue at stake worldwide may be in the tens of billions of dollars, but the more profound risks may ultimately be for VAT/sales taxes.
Keywords:
Cryptocurrency; virtual assets; tax evasion; tax compliance; Bitcoin; sales taxation; B VAT; income taxation; tax authorities; bitcoin transaction; intrinsic value; Virtual currencies; Blockchain and DLT; Currencies; Capital gains tax; Value-added tax; Global
Cover IMF Working Papers
Cross-Country Evidence on the Revenue Impact of Tax Reforms
Mr. David Amaglobeli
,
Mr. Valerio Crispolti
, and
Xuguang Simon Sheng
Many countries face the challenge of raising additional tax revenues without hurting economic growth. Comprehensive, cross-country information on the revenue impact of tax policy changes can thus support informed decision-making on viable reforms. We assess the likely revenue impact of various tax policy changes based on a sample of 21 advanced and emerging market economies, using granular information from the IMF Tax Policy Reform Database v.4.0. Our findings suggest that the revenue yield of a tax policy change varies significantly depending on the tax instrument adopted (e.g., VAT or personal income tax) and the nature of the change (i.e., rate, base). For example, in our sample, base-broadening changes to personal and corporate income taxes as well as to excise and property taxes have generally a more significant and long-lasting revenue yields than rate changes. By contrast, rate changes appear to have a relatively more significant revenue impact in the case of VAT and social security contributions. We also observe an asymmetry in the revenue impact of most tax policy measures when controlling for the direction of tax changes (i.e., its significance varies depending on whether taxes are increased or decreased). While our results are based on qualitative information of tax policy changes (i.e., dummy variables), the revenue yields of rate measures are not materially different from those that would be obtained using quantitative information on the size of the change.
Keywords:
corporate income tax; personal income tax; value added taxes; social security contributions; excise; property taxes; tax reforms; revenue yield; revenue impact; Tax-to-GDP ratio; rate change; SSC rate hike; Tax collection; Value-added tax
Cover Finance & Development
Finance & Development, March 2022
International Monetary Fund. Communications Department
Finance and Development, March 2022
Keywords:
world inequality report; public finance management systems; debt-ratio target; government funding; debt-service cost; emerging market debt ratio range; management system function; Income inequality; Value-added tax; Currencies; Global; Africa; Caribbean; Asia and Pacific; South Asia
Cover IMF Working Papers
Brazil: Tax Expenditure Rationalization Within Broader Tax Reform
Maria Delgado Coelho
The excessive complexity and burden of the Brazilian tax system, riddled by cumulative indirect taxes and heavy payroll contributions, have led to an accumulation of fiscal incentives aimed at reducing its burden on taxpayers and productive activities. Federal and subnational tax expenditures currently stand at over 5 percent of GDP. Rationalizing them can only be comprehensively feasible in the context of a broader sequenced tax reform, and could reduce resource misallocation and income inequality, as well as provide new revenues.
Keywords:
rationalization experience; Labor tax wedge; sequenced tax reform; cost of capital; zero rating; tax relief; single tax; Tax expenditures; Corporate income tax; Tax incentives; Personal income tax; Social security contributions; Global
Cover Departmental Papers
Digitalization and Taxation in Asia
Ms. Era Dabla-Norris
,
Ruud de Mooij
,
Andrew Hodge
,
Jan Loeprick
,
Dinar Prihardini
,
Ms. Alpa Shah
,
Sebastian Beer
,
Sonja Davidovic
,
Arbind M Modi
, and
Fan Qi
Digitalization in Asia is pervasive, unique, and growing. It stands out by its sheer scale, with internet users far exceeding numbers in other regions. This facilitates e-commerce in markets that are large by international standards, supported by innovative payment systems and featuring major corporate players, including a number of large, home-grown, highly digitalized businesses (tech giants) that rival US multinational enterprises (MNEs) in size. Opportunity for future growth exists, as a significant population share remains unconnected.
Keywords:
reform option; tech giant; tax design; reform proposal; OECD-Inclusive Framework; Value-added tax; Corporate income tax; Income and capital gains taxes; Digitalization; Asia and Pacific; Global
Cover IMF Working Papers
Tec(h)tonic Shifts: Taxing the “Digital Economy”
Aqib Aslam
and
Ms. Alpa Shah
The ever-increasing digitalization of businesses has accelerated the need to address the many shortcomings and unresolved issues within the international corporate income tax system. In particular, the customer or “user”—through their online activities—is now considered by many as being a critical driving force behind the value of digital services. Furthermore, the rapid growth of digital service providers over the last decade has made them an increasingly popular target for special taxes—similar to wealth and solidarity taxes—which can also help mobilize much-needed revenues in the wake of a crisis. This paper argues that a plausible conceptual case can be made to tax the value generated by users under the corporate income tax. However, a number of issues need to be tackled for user-based tax measures to become a reality, which include agreement among countries on whether user value justifies a reallocation of taxing rights, establishing the legal right to tax income derived from user value, as well as an appropriate metric for valuing user-generated data if it is ever to be used as a tax base. Furthermore, attempting to tax only certain types of business is ill-advised, especially as user data is now being exploited widely enough for it to be recognized as an input for almost all businesses. Several options present themselves for consideration—from a modified permanent establishment definition combined with taxation by formulary apportionment, to user-based royalty-type taxes—each with their own merits and misdemeanors.
Keywords:
WP; user data; withholding tax; multinational enterprise; tax treatment; company activity; gross income; resource company; Corporate Taxation; Digitalization; income tax; social media; natural resource; digital economy; small business; Corporate income tax; Data collection; Income and capital gains taxes; Income tax systems; Global; profit margin; customer base; computer database; resident company; market power
Cover IMF Staff Country Reports
Bhutan: 2018 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Bhutan
International Monetary Fund. Asia and Pacific Dept
This 2018 Article IV Consultation highlights that Bhutan continued to make strides in raising per capita incomes and reducing poverty as it concluded the 11th Five Year Plan in 2018. Notably, poverty declined from 12 percent in 2012 to 8.2 percent, and extreme poverty fell to just 1.5 percent. The country is poised to transition to middle-income status, with per capita incomes at nearly US$3,600 in 2018, up from US$1,100 in 2004. Growth has remained robust, averaging 6 percent over the 11th Plan. In FY2018, growth is expected to slow to 5.8 percent from 7.4 percent in FY2017, reflecting slowing construction activity of hydropower projects set to come on stream in 2018 and beyond.
Keywords:
ISCR; CR; real GDP; authority; broad money; GDP deflator; balance of payments; current account deficit; policy challenge; reserve cover; Indian rupee; economy well; quarterly balance of payments; Bhutanese economy; Value-added tax; Public and publicly-guaranteed external debt; Exports; South Asia; Global
Cover IMF Staff Country Reports
Russian Federation: Selected Issues
International Monetary Fund. European Dept.
Selected Issues
Keywords:
ISCR; CR; State's share; bank; SOB
Cover IMF Staff Country Reports
Russian Federation: Selected Issues
International Monetary Fund. European Dept.
This Selected Issues paper focuses on the Russian state’s footprint in the economy. Available cross-country employment data suggests that the Russian state's is relatively large, like that of Scandinavian countries. In sectors where the state's share is high, economic concentration is larger, but concentration is large even in sectors where the state's share is low. Existing policies to protect and promote competition, including in state procurement, need to be strengthened. The IMF Staff estimates suggest that the state represented about one third of Russia’s value added (VA) in 2016, smaller than in the mainstream narrative but nonetheless large. The Russian state represents close to 40 percent of formal sector activity and 50 percent of formal sector employment. State-owned-enterprises (SOE) are present in most sectors of activity. The state’s share in VA was approximated by its share in sales for market activities, and by employment for nonmarket activities. SOEs appear to underperform relative to non-state firms in a variety of economic activities.
Keywords:
ISCR; CR; State's share; bank; SOB; state conglomerate; procurement legislation; State entity; development bank; state support; government procurement; State equity participation; Commercial banks; Competition; State-owned banks; Employment
Cover IMF Working Papers
Mitigation Policies for the Paris Agreement: An Assessment for G20 Countries
Ian W.H. Parry
,
Victor Mylonas
, and
Nate Vernon
Following submission of greenhouse gas (GHG) mitigation commitments or pledges (by 190 countries) for the 2015 Paris Agreement, policymakers are considering specific actions for their implementation. To help guide policy, it is helpful to have a quantitative framework for understanding: i) the main impacts (on GHGs, fiscal balances, the domestic environment, economic welfare, and distributional incidence) of emissions pricing; ii) trade-offs between pricing and other (commonly used) mitigation instruments; and iii) why/to what extent needed policies and their impacts differ across countries. This paper provides an illustrative sense of this information for G20 member countries (which account for about 80 percent of global emissions) under plausible (though inevitably uncertain) projections for future fuel use and price responsiveness. Quantitative results underscore the generally strong case for (comprehensive) pricing over other instruments, its small net costs or often net benefits (when domestic environmental gains are considered), but also the potentially wide dispersion (and hence inefficiency) in emissions prices implied by countries’ mitigation commitments.
Keywords:
WP; co; electricity Co; tons Co; percent Co; road fuel price elasticity; Paris Agreement; carbon pricing; G20 countries; instrument choice; air pollution mortality; tax incidence; welfare effects; climate mitigation; fuel price elasticity; fuel price responsiveness; cost increase; monopoly price distortion; welfare cost; responsiveness of emission; countries flexibility; fuel price response; price change; price projection; Carbon tax; Greenhouse gas emissions; Non-renewable resources; Fuel prices; Fuel tax; Africa; Global