This paper reports the results of experiments designed to examine whether a taste for fairness affects people’s preferred tax structure. Building on the Fehr and Schmidt (1999) model we devise a simple test for the presence of social preferences in voting for alternative tax structures. The...

Due to the deteriorating fiscal situation of the states, the Government of India has taken several initiatives, including the creation of a Fiscal Reform Facility, which sought to provide financial-grant incentives to the states, in order to encourage a movement toward budget balance over the...

The Corporate Income Tax (CIT) in Jamaica is an important source of revenue. In 2002, the share of CIT in total tax revenue was approximately 6.9 percent, having fallen from 12.7 percent in 1993. Although OECD countries generally collect about 10 percent of tax revenue from corporate taxes, the...

India is a Union of 28 States, two Union Territories with legislatures, and five Union Territories without legislatures. The 7th Schedule of India’s Constitution provides for a separate State List, which enumerates exclusive legislative and executive authority that lies with state governments....

Researchers often rely on self-reported tax data to gauge the effect of taxes on an economic activity. Such data are subject to measurement errors when individuals intentionally misreport their attributes for tax purposes. To the extent that these intentional reporting errors vary with the tax...

In general, theoretical and empirical studies of tax compliance conclude that increasing penalties and detection probabilities increase compliance. However, these conclusions are based on relatively simple models with a single mode of tax evasion. In this paper, we examine the theoretical and...

This paper reports the results of experiments designed to examine whether a taste for fairness affects people’s preferred tax structure. Building on the Fehr and Schmidt (1999) model, we devise a simple test for the presence of social preferences in voting for alternative tax structures. The...

The goal of this paper is to revisit the issue of the appropriate assignment of the property tax within the context of a fiscally decentralized system. We examine whether the conventional wisdom of assigning property taxes to local governments is the right one. Particularly in light of the...

This report provides estimates of Pakistan’s tax gap by type of tax and describes the methodologies and data used to produce these estimates. A country’s tax gap is the amount of tax that goes uncollected due to non-compliance with the tax law. For estimation purposes, the operational...