Essays on The Challenges in Implementing Tax Reforms Report

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The paper "The Challenges in Implementing Tax Reforms" is a great example of a report on macro and microeconomics. Tax reform is the process that involves changing the manner in which taxes are collected or managed by the government. The process may involve the introduction of Value Added Tax or its expansion where it already exists, the broadening or simplification of corporate or personal income taxes, or the elimination of stamp and other duties (Moyi and Ronge 2006, 3). Tax reform may also involve revising the tax code and other tax laws to provide comprehensive provisions on the administration of tax and the criminal liabilities that arise due to tax evasion. Tax reforms involve a complex process that is characterized by broad issues of economic policy and issues relating to tax structure and administration.

Due to these factors, the implementation of tax reforms is often a challenging task. As stated above, tax reforms involve complex issues of economic policy. This means that there must be the political will and support for tax reforms to take place. Such political support is not always forthcoming due to the fact that tax reforms always create winners and losers hence it may be less favorable among the political elite who may have other personal interests (Sentance 2014, 1).

This is more so in developing countries. This essay focuses on the various challenges in implementing tax reform, especially in emerging markets. The essay draws upon examples of the challenges experienced in implementing tax reforms in Uganda and also borrows from other emerging countries such as India. Why Tax Reform? Tax reform, as stated above, is meant to introduce changes in the way a government collects or administers taxes.

Tax reform introduces a new tax policy or system in a country that is meant to induce economic growth. Tax policy is concerned with issues of how much revenue the government collects, its use, and whether the method used to collect the tax is the right one. The process of tax reform is meant to identify the purpose of the available tax instruments and how well these tax instruments achieve their purposes. One of the purposes of tax reform is to ensure that the tax system that is in place supports the objectives that the government has set out (OECD 2016, 2).

A sound tax system is pegged on an appropriate tax system that is developed to meet the specific economic needs of a country.  

References

Azizul, I 2015, Issues in tax reforms, Asia-Pacific Development Journal, 8(1), 1-12.

Cottarelli, C 2011, Revenue mobilization in developing countries, International Monetary Fund.

Hoskisson, R, Eden, L, Ming Lau, C and Wright, M 2017, Strategy in emerging economies, Academy of Management Journal, 43(3), 249-267.

Kayaga, L 2007, Tax policy challenges facing developing countries: A case study of Uganda, Queen’s University Kingston, Ontario, Canada.

Martinez, J and Santiso, J 2003, Financial markets and politics: The confidence game in Latin American emerging economies, International Political Science Review, 24(3), 363-395.

Moyi, E and Ronge, E 2006, Taxation and tax modernization in Kenya: A diagnosis of performance and options for further reform, Institute of Economic Affairs.

OECD 2016, Tax policy reform and economic growth, Available at: https://www.oecd.org/ctp/tax-policy/46605695.pdf [Accessed 28 April 2017]

Rao, G 2015, The tyranny of the status quo: The challenge of reforming India’s tax system, National Council of Applied Economic Research.

Sentence 2014, The challenges of tax reform, Price house Water Coopers.

Wilkinson, B 2017, Political risk in emerging markets, Available at: http://www.oliverwyman.com/content/dam/oliverwyman/global/en/2014/dec/RJ2014%2003_Political%20Risks_Ipad.pdf [Accessed 28 April 2017]

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