Tax reform can reduce tax evasion and avoidance, and allow for more efficient and fair tax collection that can finance public goods and services. It can make revenue levels more sustainable, and can promote future independence from foreign aid and natural resource revenues. There is increasing recognition of taxation’s role in state-building, in addition to greater understanding of its impacts on growth and inequality. This topic guide provides an overview of the limited, but growing, evidence on tax reform in developing countries.
Rao, S. Tax reform: Topic guide. Governance and Social Development Resource Centre, University of Birmingham, Birmingham, UK (2014) 33 pp.