Dominican Republic Gearing Up for a More Efficient Tax System : An Assessment of Tax Efficiency, a Cost-Benefit Analysis of Tax Expenditures, and an Exploration of Labor Informality and its Tax Implications
This study discusses options how to increase the Dominican Republic tax revenue and attempts to identify priority areas for efficiency-enhancing reforms. A 2016 World Bank report on Dominican fiscal policy found that the country's tax expendit...
| Main Author: | |
|---|---|
| Format: | Report |
| Language: | English |
| Published: |
World Bank, Washington, DC
2018
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/903761518538205568/Gearing-up-for-a-more-efficient-tax-system-an-assessment-of-tax-efficiency-a-cost-benefit-analysis-of-tax-expenditures-and-an-exploration-of-labor-informality-and-its-tax-implications http://hdl.handle.net/10986/29394 |
| id |
okr-10986-29394 |
|---|---|
| recordtype |
oai_dc |
| spelling |
okr-10986-293942021-05-25T09:11:40Z Dominican Republic Gearing Up for a More Efficient Tax System : An Assessment of Tax Efficiency, a Cost-Benefit Analysis of Tax Expenditures, and an Exploration of Labor Informality and its Tax Implications World Bank TAX ADMINISTRATION TAXATION TAX EFFICIENCY VALUE-ADDED TAX INCOME TAX CORPORATE TAX TAX EXPENDITURE TAX EVASION INFORMALITY INFORMAL LABOR FISCAL TRENDS This study discusses options how to increase the Dominican Republic tax revenue and attempts to identify priority areas for efficiency-enhancing reforms. A 2016 World Bank report on Dominican fiscal policy found that the country's tax expenditures were poorly targeted and regressively distributed, benefitting the wealthy more than the poor, and imposed considerable fiscal and economic costs. The report also showed that the tax contribution of the informal sector is extremely low, despite the fact that informal workers account for roughly half of the active labor force. As the new government prepares the ‘fiscal pact' first described in the country's development strategy 2030, policymakers will require a more thorough understanding of these issues and their fiscal, economic, and distributional implications. Thus, building on past analytical work, the present study focuses on two priority areas: tax efficiency and labor informality. Chapter One reveals that the DR's strong and sustained economic growth in recent years has had only a modest impact on revenues' efficiency from value-added tax, corporate income tax, personal income tax, and minor taxes. An analysis of tax-collection efficiency reveals several feasible options for boosting tax revenues. Chapter Two explores the characteristics, correlates, and effects of widespread labor informality in the DR. Identifying the correlates of informality yield important implications for promoting formalization and thereby broadening the income-tax base. 2018-02-28T19:25:02Z 2018-02-28T19:25:02Z 2017-06 Report http://documents.worldbank.org/curated/en/903761518538205568/Gearing-up-for-a-more-efficient-tax-system-an-assessment-of-tax-efficiency-a-cost-benefit-analysis-of-tax-expenditures-and-an-exploration-of-labor-informality-and-its-tax-implications http://hdl.handle.net/10986/29394 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Other Public Sector Study Economic & Sector Work Latin America & Caribbean Dominican Republic |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
TAX ADMINISTRATION TAXATION TAX EFFICIENCY VALUE-ADDED TAX INCOME TAX CORPORATE TAX TAX EXPENDITURE TAX EVASION INFORMALITY INFORMAL LABOR FISCAL TRENDS |
| spellingShingle |
TAX ADMINISTRATION TAXATION TAX EFFICIENCY VALUE-ADDED TAX INCOME TAX CORPORATE TAX TAX EXPENDITURE TAX EVASION INFORMALITY INFORMAL LABOR FISCAL TRENDS World Bank Dominican Republic Gearing Up for a More Efficient Tax System : An Assessment of Tax Efficiency, a Cost-Benefit Analysis of Tax Expenditures, and an Exploration of Labor Informality and its Tax Implications |
| geographic_facet |
Latin America & Caribbean Dominican Republic |
| description |
This study discusses options how to
increase the Dominican Republic tax revenue and attempts to
identify priority areas for efficiency-enhancing reforms. A
2016 World Bank report on Dominican fiscal policy found that
the country's tax expenditures were poorly targeted and
regressively distributed, benefitting the wealthy more than
the poor, and imposed considerable fiscal and economic
costs. The report also showed that the tax contribution of
the informal sector is extremely low, despite the fact that
informal workers account for roughly half of the active
labor force. As the new government prepares the ‘fiscal
pact' first described in the country's development
strategy 2030, policymakers will require a more thorough
understanding of these issues and their fiscal, economic,
and distributional implications. Thus, building on past
analytical work, the present study focuses on two priority
areas: tax efficiency and labor informality. Chapter One
reveals that the DR's strong and sustained economic
growth in recent years has had only a modest impact on
revenues' efficiency from value-added tax, corporate
income tax, personal income tax, and minor taxes. An
analysis of tax-collection efficiency reveals several
feasible options for boosting tax revenues. Chapter Two
explores the characteristics, correlates, and effects of
widespread labor informality in the DR. Identifying the
correlates of informality yield important implications for
promoting formalization and thereby broadening the
income-tax base. |
| format |
Report |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Dominican Republic Gearing Up for a More Efficient Tax System : An Assessment of Tax Efficiency, a Cost-Benefit Analysis of Tax Expenditures, and an Exploration of Labor Informality and its Tax Implications |
| title_short |
Dominican Republic Gearing Up for a More Efficient Tax System : An Assessment of Tax Efficiency, a Cost-Benefit Analysis of Tax Expenditures, and an Exploration of Labor Informality and its Tax Implications |
| title_full |
Dominican Republic Gearing Up for a More Efficient Tax System : An Assessment of Tax Efficiency, a Cost-Benefit Analysis of Tax Expenditures, and an Exploration of Labor Informality and its Tax Implications |
| title_fullStr |
Dominican Republic Gearing Up for a More Efficient Tax System : An Assessment of Tax Efficiency, a Cost-Benefit Analysis of Tax Expenditures, and an Exploration of Labor Informality and its Tax Implications |
| title_full_unstemmed |
Dominican Republic Gearing Up for a More Efficient Tax System : An Assessment of Tax Efficiency, a Cost-Benefit Analysis of Tax Expenditures, and an Exploration of Labor Informality and its Tax Implications |
| title_sort |
dominican republic gearing up for a more efficient tax system : an assessment of tax efficiency, a cost-benefit analysis of tax expenditures, and an exploration of labor informality and its tax implications |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/903761518538205568/Gearing-up-for-a-more-efficient-tax-system-an-assessment-of-tax-efficiency-a-cost-benefit-analysis-of-tax-expenditures-and-an-exploration-of-labor-informality-and-its-tax-implications http://hdl.handle.net/10986/29394 |
| _version_ |
1764469236272463872 |