Alsharari, Nizar Mohammad,(2019), A comparative analysis of taxation and revenue trends in the Middle East and North Africa (MENA) region. , Pacific Accounting Review, UNSPECIFIED
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Abstract
Purpose – The purpose of this paper is to gain insight into how well past reforms have performed against
revenue, equity and efficiency benchmarks of tax policymaking, so that the direction of future reform of tax
system might be determined. It also presents a comparative analysis of taxation and revenue trends in the
Middle East and North Africa (MENA) region over the data set period 1990-2012.
Design/methodology/approach – By overviewing the development and relative significance of
resource revenues, allocating non-resource taxes and examining the tax policies of constituent countries, this
paper presents a comparative review of taxation and revenue trends in the MENA region.
Findings – Findings showed, on average, a slight decline in non-resource revenues against the significant rise
in income from resources. The analysis of government revenues and current taxation structures provide insight
into how prior reforms have performed against the standard measures of tax policy-making (i.e. revenue, equity
and efficiency) and directions for change leading to the establishment of simple tax systems. The study observes
regional differences, such as the higher tax and revenues of the Maghreb sub-region over the Mashreq, except for
value-added tax, where low rates were associated with equal or greater revenue. Similarities were also found,
including the partial compensation by income taxes (not indirect taxes) for revenue lost through trade
liberalization. The challenges of tax reform are found to vary across countries and opportunities for improving
equity and reducing the complexity of tax systems across the region are identified.
Research limitations/implications – Reforms in all tax systems could have major implications for the
country, employment, earnings and tax revenues; but recommendations would require political value
judgments and government decisions. The study suggests eliminating the current tax system, thereby
replacing one of the more distortionary taxes in the current system with a neutral and efficient tax.
Originality/value – The paper signals the need, even of the oil-rich states of the Gulf Cooperation Council,
for governments to build tax systems capable of capturing and spending revenues effectively into the future.
Keywords : | Tax policy, Tax revenues, Resource revenues, Tax reform, MENA region, UNSPECIFIED |
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Journal or Publication Title: | Pacific Accounting Review |
Volume: | 31 |
Number: | 4 |
Item Type: | Article |
Subjects: | Ekonomi Pembangunan |
Depositing User: | Mohamad Sulamul Hadi |
Date Deposited: | 30 Dec 2019 07:28 |
Last Modified: | 30 Dec 2019 07:28 |
URI: | https://repofeb.undip.ac.id/id/eprint/1205 |