Appendix III. Summary of Tax Systems
- George Mackenzie, Philip Gerson, and David Orsmond
- Published Date:
- April 1997
This appendix presents in tabular form (Table 12) the eight countries at various stages of their adjust-some of the basic features of the tax systems of ment efforts.
|Country||End of Preadjustment Period||End of First Adjustment Period||End of Second Adjustment Period|
|Personal income tax rates|
|Bangladesh||60% top rate, plus surcharge of 4.5%-9%; lowest rate first applies at 2.2 and highest at 111.0 times GDP per capita (GDPPC)||50% top rate; lowest rate at 1.4 and highest at 53.2 times GDPPC||25% top rate; lowest rate at 6.3 and highest at 30.7 times GDPPC; minimum tax of Tk 1,200 or Tk 1,800, with higher amount for the self-assessed|
|Chile||60% top rate; lowest rate at 1 Taxpayer Unit (TU; a monetary unit indexed to the consumer price index) (roughly 3 times GDPPC) and highest at 80 TUs||58% top rate; lowest positive rate at 10 TUs and highest at 100 TUs||Top rate 50%; lowest positive rate at 10 TUs and highest at 100 TUs|
|Ghana||60% top rate; lowest rate at 0.1 and highest at 1.9 times GDPPC||55% top rate; lowest rate at 0.3 and highest at 4.6 times GDPPC||50% top rate; lowest rate at 0.4 and highest at 12.6 times GDPPC|
|India||50% top rate, plus surcharge of 3%; lowest rate at 2.7 and highest at 15.3 times GDPPC||50% top rate, plus 6% surcharge; lowest rate at 2.4 and highest at 10.9 times GDPPC|
|Mexico||55% top rate; lowest rate at 0.1 and highest at 29.3 times GDPPC||55% top rate; lowest rate at 0.1 and highest at 26.9 times GDPPC||35% top rate; lowest rate at 0.1 and highest at 7.3 times GDPPC; tax credit of 2.5% of tax due in higher brackets|
|Morocco||44% top rate, plus solidarity tax 4.4%, plus complementary tax at various rates of 1%-20%; highest rate at 47.0 times GDPPC||60% top rate, plus solidarity tax of up to 8.2%, plus complementary tax set at rate of 1%-18%; lowest rate at 1.0 and highest at 50.6 times GDPPC||48% top rate; lowest rate at 0.3 and highest at 6.3 times GDPPC; minimum turnover tax of 6% of gross income for some professionals and 0.5% for others|
|Senegal||75% top rate; lowest rate at 2.1 and highest at 103.6 times GDPPC||73% top rate; lowest rate at 1.5 and highest at 67.5 times GDPPC||64% top rate; lowest rate at 3.0 and highest at 63.2 times GDPPC|
|Thailand||65% top rate; lowest rate at 0.7 and highest at 73.4 times GDPPC||55% top rate; lowest rate at 0.6 and highest at 94.3 times GDPPC||37% top rate; lowest rate at 0.6 and highest at 76.1 times GDPPC|
|Personal income tax base, and key structural features|
|Bangladesh||Income from salary, interest, and dividends subject to withholding, with amount withheld from dividend income deductible from final tax obligations; dividend income up to Tk 5,000 (2 times GDPPC) subject to certain conditions is exempt; value of new or additional investments of up to the lesser of Tk 30,000 or 30% of the value of the new investment undertaken by the individual in designated industrial companies is deductible||Income from salary, interest, and dividends subject to withholding, with amount withheld from dividend income deductible from final tax obligations; bank interest up to Tk 15,000 and dividend income up to Tk 15,000 under certain circumstances are exempt (although taxed in the hands of the corporation making the distribution); new or additional investment of up to one-third of total income in designated industrial companies is deductible||Income from bank interest and dividends subject to withholding, with amount withheld for each of these deductible from final tax obligations; interest on government securities and dividend income up to Tk 30,000 are exempt (although taxed in the hands of the corporation making the distribution); new or additional investment of up to one-fifth of total income in designated industrial companies is deductible|
|Chile||Schedular element to tax system—schedular taxes at proportional rates on capital, labor, and professional income; tax on labor creditable against complementary income tax, IGC (a comprehensive income tax applying to all types of income, with exemptions essentially limited to personal and dependents’ deductions); separate tax on capital gains||Major changes: indexation of tax brackets to TU; elimination of separate tax on capital gains; replacement of proportional tax on labor income by progressive tax, creditable against IGC||Major changes: tax on professional income eliminated; schedular tax on capital income creditable against complementary income tax; additional exemptions from complementary tax for contributions to various investment and saving schemes, including 100% of voluntary contributions to the account of the taxpayer with the national defined-contributions pension scheme|
|Ghana||Taxable income includes income from virtually all sources, excluding that part of cash housing allowances that is below 20% of salary, rental income (which is separately assessed), income from cocoa, forestry and agricultural income for initial period of three to ten years, and interest on savings accounts; dividend income subject to final withholding at 15%||Basically unchanged from end of preadjustment period, except that dividend income now subject to tax, and, along with nonbank interest income subject to withholding at 30%, creditable against final tax liability||Basically unchanged from end of first period, except that dividends subject to a final withholding tax of 15%, and rental income no longer subject to a separate schedule|
|India||Income from all sources, excluding first Rs 10,000 (3 times GDPPC) of dividend income, an additional Rs 3,000 for dividend income from certain funds, and agricultural income (which is taxed at the state level); income tax obligations can be reduced by 20% of investments in certain forms of saving and equity instruments, with total deduction limited to Rs 10,000||Essentially unchanged from end of preadjustment period, though maximum deduction for investments raised to Rs 12,000|
|Mexico||Income from all sources, excluding interest paid by savings banks and from some government bonds; dividend income subject to withholding at 55%, creditable against final tax liability, and interest income from bearer bonds at a final rate of 21%||Essentially the same as at the end of the preadjustment period, except that interest paid by savings banks and from some government bonds is now also subject to final withholding at 21%||As at the end of the first adjustment period, except that dividend distributions are neither subject to withholding nor taxed under the personal income tax; however, individuals may include dividend income to claim a credit for the corporate tax that has already been paid on such income; the final withholding taxes levied on bank interest and interest from government securities were lowered to 0%-2%|
|Morocco||A schedular system, with wage income subject to separate withholding taxes (the income tax and the national solidarity tax); the complementary income tax applies to all forms of income; dividends, interest earnings, and rental income are not subject to separate schedular taxes, but included in complementary tax base; dividend and interest income withheld at 25%, which at the taxpayer’s option can be the final rate||Essentially unchanged from the end of the preadjustment period, except that agricultural income is exempt until the year 2000||Essentially unchanged from the end of the first period, except that dividend income now subject to 10%-30%; for both dividend and interest income the withholding tax at 15%, and interest income at withheld amount can be considered the final tax due or can be credited against personal income tax obligations|
|Senegal||A schedular system, with withholding taxes applying to wages and salaries, and dividends and nonbank interest (taxed at 8%-25%); a progressive tax with a top rate of 65% applies to all income||Essentially unchanged, except that dividends and nonbank interest taxed at 10%-25%, and the top rate of the comprehensive progressive income tax lowered to 60%||Essentially the same as at the end of the first period, except that dividends and nonbank interest now taxed at 8%—16%, with the top rate of the income tax lowered to 50%|
|Thailand||Income from all sources, except a part of dividend income varying from 25% to 35%; withholding tax on dividend income applies at the shareholder’s personal income tax rate||Essentially unchanged from the end of the preadjustment period, except that individuals can exclude dividend income from their taxable income and pay the withholding tax, or include it and take a deduction of 30% of its value; certain interest subject to withholding at 15%, which is the final tax rate unless the individual chooses to have such income included as taxable income, whereupon the tax withheld is creditable||Essentially the same as at the end of the first adjustment period, except dividend income now subject to withholding at 10%; individuals can exclude such income from their taxable income or include it and take a deduction of 42% of its value|
|Company income tax rates|
|Bangladesh||30% for income below Tk 150,000 (75 times GDPPC), all income of public companies, and all income earned abroad and remitted to Bangladesh; otherwise 55%||Publicly traded industries, 45%; nonpublicly traded industries, 50%; all others, 60%; rebate of 10% of tax due for some income remitted from abroad to Bangladesh||Essentially unchanged, except that rates reduced as follows: for publicly traded companies, to 37.5%; for nonpublicly traded, to 42.5%; all others—including financial institutions—to 50%|
|Chile||General rate, 35%; banks and insurance companies, 40%||Subject to schedular tax on capital income at 10%, plus the “additional” tax of 40%||Major revisions to rate structure: earnings of resident companies, 15%; earnings of nonresident companies, 35% (with credit for corporate income tax already paid)|
|Ghana||Basic rate, 55%; companies producing excisable goods, 50%; mining income, and farming income following initial five-year exemption period, 45%; Ghanaian-owned companies for first five years of operations—reduced rates, 35%—45%; minimum turnover tax of 5% after initial five years, which is waived for mining and farming||Essentially unchanged||New rates as follows: basic rate (including farming after the exemption period), 35%; mining companies, 45%; banking, insurance, commerce, printing, and petroleum companies, 50%|
|India||Widely held Indian companies, 50%; closely held trading investment companies, 60%; other Indian companies, 55%; foreign companies (depending on type of income), up to 65%; surcharge of 5% of tax due for income above Rs 50,000 (8 times GDPPC); agricultural income taxed only at the state level||Rate changes as follows: widely held Indian companies, 45%; all closely held companies, 50%; surcharge of 15% of tax due for income above Rs 75,000 (8 times GDPPC)|
|Mexico||5%—42% depending on profit level, with highest rate applicable for income above P 1,500,000 (11.2 times GDPPC)||11%—40%; new uniform base rate of 35% phased in from 1987 to 1991||34% for most companies; minimum profit tax of 2% of turnover after first two years of operation, credited against corporate income tax obligations|
|Morocco||40%—48% depending on profit level, plus solidarity tax of 4.0%-4.8%||Unchanged, except that forfeit (presumptive tax) based on turnover for small businesses introduced||General rate, 38% plus 3.8% solidarity tax; minimum turnover tax: standard rate, 0.5%; companies selling petroleum products, gas, butter, edible oils, flour, electricity, and water, 0.25%; minimum turnover tax creditable against corporate income tax obligations|
|Senegal||General rate (for industrial and commercial enterprises), 33⅓%;for unincorporated enterprises, 16%-28%; fixed-rate minimum tax of CFAF 400,000 for corporations, depending on size of turnover, which is creditable against corporate income tax obligations (income earned in the first two years of operations exempt)||Revised rates: unincorporated enterprises, 28%; fixed-rate minimum tax of CFAF 0.5-1 million||Revised rates: general rate, 35%; unincorporated enterprise income, 35%|
|Thailand||Public companies, 35%; nonpublic companies, 45%; petroleum companies, 50%||Revised rates: public companies, 30%; nonpublic companies, 35%||Revised rate: nonpublic companies, 30% (same as public)|
|Corporate income tax base, depreciation, and other key features|
|Bangladesh||All dividend income of companies taxed as ordinary corporate income at a rate of 30%, including that received from companies that enjoy tax holidays; depreciation rules quite liberal; operating losses from business activities can be carried forward for six years, and unutilized depreciation allowances for an indefinite period||Basically unchanged, except that all dividend income of companies now taxed at a final rate of 15%||Basically unchanged, except that dividend income received from tax-exempt companies is no longer taxable under certain conditions|
|Chile||Partial adjustment for inflation; straight-line depreciation||Major change: full indexation of balance sheet||Essentially unchanged|
|Ghana||Taxable income excludes dividends received from other companies; depreciation allowances vary—10%-20% for first year and 3%-15% a year thereafter depending on type of asset; losses not carried forward or backward, except for oil and farming enterprises; unutilized depreciation allowances can be carried forward; exempt: income from cocoa farming, income from farming for first five years of operation, income from some public enterprises||Essentially unchanged||Essentially unchanged|
|India||Net intercompany dividend payments are excluded from the tax base of the receiving company, provided that the dividend income received is in turn distributed by the receiving company (otherwise, dividend income is taxable for the receiving company); rates for depreciation vary at 5%-100%, depending on type of asset and business; losses can be carried forward for eight years under certain conditions (unutilized depreciation carried forward indefinitely)||Essentially unchanged|
|Mexico||Dividend income received is subject to the corporate income tax but is deductible if then paid to another company (there is no withholding tax for dividends paid to another company); depreciation on straight-line basis varying at 5%-20%, depending on type of asset; losses may be carried back for one year or forward for four years||Interest income, the tax basis and cost of sales, and depreciation are inflation adjusted; provisions for treatment of dividends, basis of calculation of depreciation, and treatment of losses essentially unchanged||Essentially unchanged, except that dividend income paid out from past or current after-tax profit is neither subject to withholding nor taxed under the personal income tax; fixed assets are depreciated on a straight-line basis at 5%-25%, and at 50% for pollution-control equipment (for machinery and equipment, the entire present value can be taken in the first year); losses may be carried forward for five years, or up to ten years in certain circumstances|
|Morocco||Dividends included in the tax base; 85% deduction allowed on dividend income received from a corporation in which there is a 30% or more ownership by the receiving corporation; depreciation on straight-line basis; losses may be carried forward for five years (unutilized depreciation allowances may be carried forward indefinitely)||No major changes, except that dividend income from a company listed on the stock exchange and certain other entities is exempt; 5%-8% of taxable profit must by law be appropriated into approved investment vehicles, including purchase of government bonds; agricultural profits exempt until year 2000||No major changes, except that agricultural profits to be taxed at 18% after 2000, but cattle-raising companies exempt|
|Senegal||Depreciation usually straight-line at 3%-33%; losses may be carried forward for three years (unutilized depreciation allowances may be carried forward indefinitely)||Essentially unchanged||Essentially unchanged|
|Thailand||Intercompany dividend income received may be excluded from income tax base subject to a maximum of 15% of total company income; dividend income is subject to withholding; depreciation can be either straight-line 5%-100% or accelerated; losses can be carried forward for five years||Essentially unchanged; dividend income withholding rate 20%||Essentially unchanged; dividend income withholding rate 10%|
|Corporate income tax holidays|
|Bangladesh||Tax holidays may be granted for periods of five to nine years; special depreciation rules apply for new industrial undertakings (80%-100% write-off for property over the first two years), for companies with double or triple shifts (additional 50%-100% of normal depreciation deduction), and for ships other than those used for inland waterways (100% write-off over three years); special income tax rules and provisions for some agricultural earnings, for oil, gas, and mining companies, and for insurance and cooperative societies; some profits from the export of local goods, except for tea and jute, are tax exempt||Essentially unchanged, except that special rules for cooperatives no longer apply||Essentially unchanged, except that tax holidays for industrial, tourism, and export zones may be granted for periods of 5 to 12 years; an additional investment allowance applies for new industrial machinery; and special rules no longer apply to insurance companies|
|Chile||Numerous regional and sectoral incentives||Limited incentive schemes||No major change|
|Ghana||Various tax holidays may be granted, including holidays from income tax for up to five years (ten years for agricultural enterprises); exemption from customs duties on machinery imports; rebate of 30%-40% of corporate income tax and 30%-40% of customs duties for new plant and equipment for nonmetropolitan industries; manufacturing industries not including woodworking and metal processing entitled to 25%-50% income tax rebate if they export 5%-25% of production; additional 5%-10% allowance for depreciation for qualifying new plant and equipment used in an industrial establishment||Essentially unchanged, except that 30%-40% rebate of customs duties dropped||Essentially unchanged, except that rebates for manufacturing exporters range from 30% to 75%|
|India||Tax holiday from income tax for five years for new industrial undertakings within Free Trade Zones and for firms producing exports; limited income tax deductions for up to ten years for newly established manufacturing, hotel, and shipbuilding enterprises; most businesses may deduct up to 20% of profits if the money is used for plant and equipment or deposited with the Development Bank||Essentially unchanged, except that 20% profit deduction limited to tea producers|
|Mexico||Accelerated depreciation on certain assets in any one of the first five years for firms located in priority zones; selective policy to promote new industrial activity in priority areas and employment generation, based on size, nature, and location of industrial activity (affects tourism, border areas, automobiles, non-oil exports); income tax rebates for publishers (50% of tax due) and agricultural, cattle, fishing, and forestry industries (25%-40% of tax due)||Essentially unchanged||Major changes as follows: selective promotion of new industrial activity limited to businesses along U.S. border and exporters (reduced benefits apply); accelerated depreciation provisions abolished|
|Morocco||Preferences for exporting and other designated firms include ten-year income tax holiday; other preferences can include preferential interest rates and depreciation profiles for real estate, housing, agriculture, and exports; some preferences are geographically based||Essentially unchanged||Changes as follows: income tax holiday for some exporting and other designated firms reduced to five years; for exporting firms a 50% tax rebate is given for following five years; exemption from import duties introduced|
|Senegal||Consumer cooperatives, mutual farm credit banks, and agricultural agencies exempt from income tax, while construction, printing, airlines, and maritime shipping exempt from minimum tax; temporary exemptions from income tax also available for new factories and for mining companies for five years; complete exemption from taxes and duties for companies in industrial free zone of Dakar; accelerated depreciation at twice normal first year rates for new machinery in manufacturing, transport, and farming; exemptions from import taxes and turnover tax for period of five to eight years for job-creating investment in manufacturing, agriculture, tourism, mining exploration, transport, telecommunications, and energy production||Essentially unchanged, except that: construction no longer exempt from minimum tax; tax credit of 50% of profit taxes for retained funds that are used for construction for industrial, tourism, and housing purposes for a period of up to eight years; narrowing of applicability of exemptions from import taxes and turnover tax (exemptions now related to location, size, use of technology, and use of local resources of firms investing in manufacturing, agriculture, tourism; maximum exemption period increased to 12 years)||Essentially unchanged|
|Thailand||Approved enterprises may be exempted from import and sales taxes on capital equipment, and for three to eight years on income taxes under the Investment Promotion Act||Essentially unchanged||Change in emphasis of incentive schemes from promotion of exports to regional development (encouraging location of industries outside Bangkok area); amount and type (by tax) of tax exemption varies, but can reach 100%; the period of exemption can reach eight years, depending on the region and type of export|
|Domestic taxes on goods and services|
|Bangladesh||Sales tax applying to certain specified domestically produced and imported manufactured items; rates imposed at 20% on some imported goods and domestically produced manufactured goods, 10% on industrial chemicals, processed food and furniture, and certain other goods if produced domestically||Essentially unchanged except that rate of 20% applies only to imports of manufactured goods||VAT introduced in 1991 and applied at the importer-manufacturer stage at a single rate of 15% (small firms, including those in the wholesale and retail sectors, pay a turnover tax of 2% unless they register for the VAT); exempt: cottage industries, textiles, foodstuffs, transport, insecticides, jute cuttings, oilseeds, some chemicals and drugs, fertilizers, basic plastics, some metal products; exports zero-rated|
|Chile||Cascading sales tax; exemptions: automobiles and certain other products (no provision for relief of tax embodied in inputs of taxed manufacturers); rates: 1%-70% (1969; most revenue from 8% rate)||VAT introduced in 1975 with general rate of 20%; initial exemptions for certain basic goods, reading materials, and special rates eliminated by 1980; exports zero-rated||Changes as follows: general rate, 18%; luxury rates, 30%-50%; alcohol, 13%-70%|
|Ghana||Single-stage sales tax on specified locally produced manufactured goods; rates: most goods not subject to an excise, 11.5%; goods subject to excises, 7.5%; salt, cigarettes, textiles, and certain building materials, 5%; imports, up to 30% (some specific); services tax on selected services: 25% for entertainment, 10% for hotels and restaurants; exempt: food, motor vehicles (which are subject to a special vehicle tax), education material, machinery and equipment for use in agriculture, manufacturing, and mining, petroleum products, one-band radio sets, and exports||Essentially unchanged, except that rate on most goods not subject to excise now 10%||Some changes in rate structure: general rate applying to both imports and domestically produced consumer goods of 17.5%; reduced rate of 7.5% for concession goods; 35%-100% for luxuries; all rates now ad valorem; some goods taxed at different rates|
|India||Modified VAT (Modvat) introduced in 1986/87: central excise duties on commodities used in the manufacture of 86 categories of goods are rebated if manufacturer subject to tax; textiles, petroleum, capital goods, and most services are not covered by the Modvat; sales taxes levied by the states are imposed on inter- and intrastate trade||Basically unchanged, except for addition of capital goods and petroleum to the list of taxable goods|
|Mexico||VAT introduced in January 1980: general rate, 15%; some beverages, medicines, and production in the border and free-trade zones, 6%; luxury rate (for items such as caviar, some color televisions, motorcycles, golf equipment), 20%; zero-rated: exports, foodstuffs, some beverages, tractors; exempt: credit instruments, residential construction, banking services, education, newsprint||No major changes: reduced rate of 6% now applies to nonbasic processed foods and not to beverages; 20% applies to some services as well as luxury items; medical services added to exempt list||Major change: general rate 10%|
|Morocco||Turnover tax levied at production stage on manufactured goods at 4.2%-15%, and on services at 12%; many exemptions; rates can differ between imported and domestic goods||VAT introduced in 1986: general rate, 19%; transport, petroleum products, edible oils, tea and coffee, 7%; tourism services and banks, 12%; construction, 14%; luxury goods, 30%; exempt: agriculture and retail sector, small wholesalers and producers, basic foodstuffs and consumption goods such as bread, sugar, publications, and others; zero-rated: exports, unprocessed foodstuffs, and agricultural inputs; same rates for imports, but the list of exempted products can differ||Changes as follows: rate of 7% now applies to water, electricity, interest, financial services, and services of lawyers and doctors and no longer to tea and coffee; transport, tourism, bank services now taxed at 14%; the list of exempt basic foodstuffs expanded to include meat and fish; unprocessed foodstuffs no longer zero-rated; same rates for imports and domestic goods|
|Senegal||VAT applied at four rates on manufacturing, crafts, other productive activities: general rate, 20%; fuel oil, essential foodstuffs, various raw materials, 7%; other petroleum products, 34%; luxuries, 50%; services taxed at 7%-50%; exempt: agricultural production, wholesale and retail sectors, exports, activities of public entities, certain imports including crude oil||Essentially unchanged||Major change: elimination of the tax on services, except for a 15% tax on telecommunications|
|Thailand||Business tax on gross receipts of 12 categories of businesses, including importers; rates vary from 1.5% to 40%; certain other categories of businesses pay rates of between 0.5% and 10.5%; retailers generally exempt||Essentially unchanged||VAT introduced in 1992: single rate of 7%; exports zero-rated; turnover tax of 1.5% for small businesses and 2.5%—3% on “turnover” for financial services; exempt: agricultural products and inputs, education, domestic transport, newsprint, medical services|
|Bangladesh||Applied to a fairly large number of items—including jute, advertisements, electricity—in addition to traditional excisable products||Basic structure unchanged||Supplemental VAT applied at the producer level to the value added of 161 goods at 5%-350% (5% hotels, crude palm oil; 350% foreign cigarettes); additional specific rates on handmade cigarettes, textiles, and bank services; since no input credit allowed, the supplementary VAT operates essentially as an excise tax|
|Chile||Excises on traditional excisable products—tobacco and alcoholic beverages, petroleum—and a few others||Basic structure unchanged||Basic structure unchanged|
|Ghana||Imposed on tobacco, alcohol, soap, and salt (at specific rates); on textiles, cosmetics, furniture, footwear, mineral water at ad valorem rates of 20%-60%;and on domestic cocoa sales at 100%||Basic structure unchanged, but maximum ad valorem rate for goods other than cocoa raised to 100%||Coverage of tax restricted to traditional excisable items—now including petroleum products—and cocoa sales|
|India||280 excises, with many specific rates; taxable goods include petroleum, tobacco, textiles, luxuries; maximum rate of 105%||Basic structure unchanged; maximum ad valorem rate lowered to 70%|
|Mexico||In addition to traditional excisable goods (tobacco at 21%-140%, gasoline at 110%, alcohol at 15%-50%, petrochemical products at 13%-18%); a fairly large number of goods, including sugar, electricity, telephones, cement, cotton, chocolate, nonalcoholic beverages taxed at specific and ad valorem rates||Some nontraditional products dropped from the list; revised rates as follows: tobacco, 25%—180%; alcohol, 19%-50%; sugar, telephones, 32%-72%; nonalcoholic beverages, 16%-40%||Many excises abolished; revised rates as follows: alcohol, 21%-44%; tobacco, 21%-140%|
|Morocco||Numerous goods taxed, generally specific rates on alcohol, luxuries, petroleum, sugar; ad valorem rate on tobacco||Basic structure unchanged||Basic structure unchanged|
|Senegal||Moderately large number of goods subject to tax, including tobacco products, alcoholic beverages, edible oils, soft drinks, kola seeds, tea, and coffee, which are taxed at specific rates||Conversion of rate structure to 13 ad valorem rates; 150% for kola seeds; 36%-50% for alcohol; 27% tobacco; 2.5%-45% for beverages; 2.5% for cement||Basic structure unchanged|
|Thailand||Ad valorem excises imposed on beverages (20%-40%), tobacco (45%), cement and petroleum products (5%-41%); excises on certain other products are levied at specific rates||Revised rates as follows: beverages, 35%—50%; tobacco, 35%-48%; petroleum products, 5%-36%; cement taxed at 9%||Automobiles subject to tax at 32.5%—38%; revised rates as follows: beverages, 20%-48%; tobacco, up to 60%; petroleum products, l%-36%; other luxuries, 2%-l4%|
|Bangladesh||Three export taxes—on tea, hides, and raw jute||Raw jute no longer taxed||Only export tax is a specific tax on fish|
|Ghana||Four export taxes—rates at 5%-l00% for lumber, logs, gold, and cocoa||Three export taxes—6%-100% for timber, gold, and cocoa||One export tax: 100% for cocoa receipts less producers’ and marketing costs|
|India||No export taxes as such; 439 export controls||Fewer than 200 export controls, mainly on agricultural products|
|Mexico||164 export taxes, mainly on agricultural products and petroleum; 55 commodity exports prohibited||62 taxed, mainly agricultural products and petroleum; and 39 prohibited||Most taxes and prohibitions eliminated; remaining apply mainly to agricultural products|
|Morocco||Several; phosphates and other minerals||Basic structure unchanged||Basic structure unchanged|
|Senegal||One export tax, on phosphates at 2.5%—5%||Basic structure unchanged||Basic structure unchanged|
|Thailand||Six export taxes; specific duties on hides and raw silk; ad valorem on rubber, rice, metal scraps, wood||Duties on rice and metal scraps eliminated||Duty on rubber eliminated|
|Bangladesh||Many rates; rates up to 125% on raw materials and semifinished goods, and up to 300% on finished goods; system of import licenses; many ad hoc exemptions||Basic structure unchanged||Substantial reduction in range of rates: 7.5% for basic inputs, 15% for raw materials, 30% for semifinished goods, 45% for consumption goods, and 60% for selected goods; concessional rates apply to spare parts, electrical equipment, agricultural inputs, and medicines|
|Chile||Numerous rates, 0%-220% plus; many goods subject to highest rates; widespread use of quantitative restrictions, simple average import duty at 94%||Major changes: uniform import tariff of 10%, except for motor vehicles and parts; quantitative restrictions eliminated; a few temporary tariffs on cars varying from 4% to 15% for 30 products||General rate of 15%, with 9% on imports to free zone, and 5% on boat engines and work tools for small fisheries; surcharge of 5%-15%; exempt: tax on imported capital can be deferred up to seven years|
|Ghana||Three ad valorem rates at 0%, 25%, and 30%; specific rates for food, live animals, beverages, tobacco, and textiles; use of quantitative restrictions; exempt: machinery, commercial vehicles, tractors, building material, some basic foodstuffs, and medicines||Changes: specific rates only on alcohol and tobacco; quantitative restrictions substantially liberalized; exemptions limited to agricultural machinery, tractors, crude oil, and medicines||Changes: four rates at 0%, 10%, 20%, and 25%; special tax of 10%-40% on textiles, beverages, and tobacco; some duties specific|
|India||Most imports subject to licensing; imports of consumer goods generally prohibited; wide dispersion of rates with maximum rate of 400%; ad hoc exemptions and reductions in rates||Liberalized; maximum tariff rate 100%; import licensing affects one-third of tariff lines; continued ad hoc exemptions and reductions in rates|
|Mexico||Virtually all imports subject to licensing; rates up to 100%, though 90% of tariff lines have a duty rate less than 50%; certain primary and semiprocessed products and farm inputs enter duty-free||Relatively few imports subject to licensing; standardization of rates into seven bands ranging from 0%-40%||Further standardization of rates into three bands at 0%-20%|
|Morocco||Top rate of 400% (zero on imports of petroleum); restrictions apply to around two-thirds of imports; additional stamp duty tax of 10%; additional special import tax rate of 15% with many exemptions||Major changes: top rate reduced to 45%; additional special import tax rate reduced to 5%; quantitative restrictions replaced with tariffs||Major changes: top rate reduced to 40% (for certain agricultural products); additional 10% for capital goods imported by enterprises benefiting from investment codes; 12.5% for medicines; 15% for other imports|
|Senegal||Standard rate of 45%; special rate of 15% for countries with most-favored-nation treatment; special rate of 5% for trade with ECOWAS countries; additional fiscal duties at 10% (raw materials, capital goods), 40% (semifinished and noncompeting finished products), 50% (luxury products), and 75% (competing finished products); plus specific stamp duties; quantitative restrictions used; exempt: large number of products exempt from import taxes; essential foodstuffs, medicines, boats, and airplanes exempt from fiscal duty||Rate changes as follows: semifinished goods, 30%; luxury products, 35%; competing finished products, 65%; quantitative restrictions virtually abolished||Rate changes as follows: semifinished goods, 20%; luxury products, 30%; competing finished products, 50%; additional customs stamp duty of 3%|
|Thailand||Both specific and ad valorem rates; majority of goods assessed at rates from 10% to 80%; some goods subject to licensing; surcharges of 10%-30% imposed on 25 products||Basically unchanged||Seven rates: raw materials at 1%, primary goods and machinery at 5%, intermediate at 10%, finished goods at 20%, highly protected goods at 30%, motor vehicles at 42%-68.5%; exempt: lower rates for ASEAN Regional Trade Liberalization Area (around 1% of import value subject to nontariff barriers in agricultural and industrial sectors; additional surcharges can be imposed); also exempt: special policy goods, crude oil, fish, fertilizers, exports|
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ChopraAjai and others1995India: Economic Reform and GrowthOccasional Paper 134 (Washington: International Monetary FundDecember).
ChuaDale1995 “The Concept of Cost of Capital: Marginal Effective Tax Rate on Investment,” inTax Policy Handbooked.ShomeParthasarathi (Washington: International Monetary Fund) pp. 161–65.
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148. Nigeria: Experience with Structural Adjustment, by Gary Moser, Scott Rogers, and Reinold van Til, with Robin Kibuka and Inutu Lukonga. 1997.
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144. National Bank of Poland: The Road to Indirect Instruments, by Piero Ugolini. 1996.
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131. Capital Account Convertibility: Review of Experience and Implications for IMF Policies, by staff teams headed by Peter J. Quirk and Owen Evans. 1995.
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Note: For information on the title and availability of Occasional Papers not listed, please consult the IMF Publications Catalog or contact IMF Publication Services.