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...

As economic integration within the European Union (EU) progresses, the interactions between the tax systems of the Member States are of growing importance. Member State tax policies can have spillover effects on other Member States and differing abilities to provide net fiscal benefits to...

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...

Excise taxes on smoking, drinking, gambling, polluting, and driving are always topical and controversial. Not only are these taxes convenient sources of government revenue, they can also be designed to reflect the external costs that consumers or producers of excisable products impose on other...

Following the introduction of the euro, the European Union has started to debate the desirability and feasibility of more co-ordination in the field of capital income taxation. In contrast with product taxes, the EU Treaty does not provide for explicit authority to harmonize income taxes. So...

Explains that by imposing a carbon excise on fossil fuels, the level of CO2 emissions in the atmosphere would be reduced significantly. Since the earth's atmosphere is a common property resource, international coordination in collecting and enforcing the levy at country level is required.

Sijbren Cnossen comments on "Issues in Integration of Federal and Provincial Sales Taxes: A Canadian Perspective." by Satya Poddar and "The (Apparent) Demise of Sales Tax Deductibility: Issues for Analysis and Policy." by David E. Wildasin.

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....