The European Commission is evaluating the performance of the common VAT, which has many shortcomings. The numerous exemptions and differentiated rate structures violate the logic and functionality of the VAT. The exemptions distort input choices and outsourcing policies. Reduced rates are...

The underutilization of existing capital stock is a disturbing phenomenon in developing countries. Faced with this situation, Pakistan introduced a new tax in 1966 that was called a capacity tax. By taxing capacity output instead of actual production, the Government believed that the resulting...

In the course of introducing a market-oriented tax system, most Central and Eastern European countries are actively considering the merits of a value-added tax. Social, economic, and technical issues pertinent to the introduction and operation of the VAT are examined, including the burden...

In the spirit of the European Commission’s call for a simpler, more robust and efficient VAT system, this article proposes to integrate exempt insurance services into the European VAT, and to abolish the discriminatory, excise-type insurance premium taxes levied by the various Member States....

A modern Goods and Services Tax (GST) would do much to alleviate the problems of India’s current indirect tax system which is a serious impediment to the formation of a single common market and further economic growth. The Centre and the States should both have access to the full GST base,...