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This paper reviews trends in taxation and revenue in MENA countries over 1990-2012, with a focus on non-resource taxes. On average, non-resource revenues declined slightly, while resource revenues soared. Country experiences vary: rates of main taxes and their revenues tend to be higher in the Magreb than in the Mashreq, except for the value-added tax, where lower rates are associated with equal or higher revenue; most oil producers raise little tax revenues—generally less than 5 percent of GDP—and most have reduced them since the late 1990s. But there are similarities: unlike common experience around the world, income taxes (not indirect taxes) have partially compensated for lost revenue from trade liberalization; revenues from indirect taxes have remained stable; personal income taxes have played an unimportant role as a revenue tool; and fees and stamp duties are significant revenue sources. Looking forward, tax reform challenges will also vary across countries: the Maghreb needs to focus on efficiency-enhancing reforms, especially in capital income and consumption taxes; the Mashreq have some room to increase revenue; and, there are ample opportunities to improve equity and reduce complexity of tax systems in all countries. Finally, the recent decline in oil prices and revenues is a reminder that even resource-rich GCC countries need to lay the basis of a tax system for the future.

Fiscal policy -- Africa, North. --- Fiscal policy -- Middle East. --- Revenue -- Africa, North. --- Revenue -- Middle East. --- Taxation -- Africa, North. --- Taxation -- Middle East. --- Political Science --- Law, Politics & Government --- Public Finance --- Taxation --- Corporate Taxation --- Taxation, Subsidies, and Revenue: General --- Personal Income and Other Nonbusiness Taxes and Subsidies --- Business Taxes and Subsidies --- Taxation, Subsidies, and Revenues: Other Sources of Revenue --- Taxation and Subsidies: Other --- Trade Policy --- International Trade Organizations --- Public finance & taxation --- Corporate & business tax --- Revenue administration --- Tax incentives --- Corporate income tax --- Value-added tax --- Taxes on trade --- Taxes --- Revenue --- Corporations --- Spendings tax --- Tunisia

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Personal income taxes (PITs) play little or no role in the Middle East and North Africa, often yielding less than 2 percent of GDP in revenue—with the exception of few North African countries. This paper examines how PITs have evolved in recent decades, and what they might look like in the next 20 years. Top marginal tax rates on labor and business income of individuals have declined substantially, a trend that mirrors reductions in advanced and developing economies. Taxation of passive capital income has changed very little, and the revenue intake from this source remains low throughout the region (less than 1 percent of GDP on average and concentrated in oil-importing non-fragile states). Social security contributions (SSC) have increased in importance in nearly all MENA countries, and some countries have introduced additional payroll taxes. The combination of reduced marginal tax rates, light taxation of income from capital and business activities, and increase of SSC, have resulted in income tax systems that create disincentives to work and incentives for informality, and contribute little to government revenue and income redistribution. Given differences in economic and political structures, demographics, and starting points, the path to PIT/SSC reforms will vary across the region. Countries with relatively mature PIT/SSC systems, where revenue performance has improved in the past two decades, will increasingly need to balance the revenue and equity objectives against effciency objectives (in particular labor market incentives and infromality). Countries with no PITs will have to weigh whether a consumption tax/SSC system that mimic a flat tax on labor income is sufficient to diversify revenue away from oil and whether to adopt PITs to address rising income and wealth inequality. Finally, fragile states, who face more political volatility and weaker fiscal institutions, will have to focus on simplicity of tax design and collection to be able to raise revenue from PITs.

Morocco --- Macroeconomics --- Economics: General --- Personal Finance -Taxation --- Taxation --- Corporate Taxation --- Taxation, Subsidies, and Revenue: General --- Taxation and Subsidies: Externalities --- Redistributive Effects --- Environmental Taxes and Subsidies --- Personal Income and Other Nonbusiness Taxes and Subsidies --- Aggregate Factor Income Distribution --- Business Taxes and Subsidies --- Economic & financial crises & disasters --- Economics of specific sectors --- Public finance & taxation --- Corporate & business tax --- Welfare & benefit systems --- Personal income tax --- Taxes --- Income tax systems --- Income --- National accounts --- Income and capital gains taxes --- Corporate income tax --- Currency crises --- Informal sector --- Economics --- Income tax --- Corporations --- Social security --- Tax administration and procedure

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This paper evaluates the nature and extent of, and possible responses to, two of the central challenges that globalization poses for revenue mobilization in Sub-Saharan Africa (SSA): from corporate tax competition, and from trade liberalization. It does so using a new dataset with features needed to meaningfully address these issues: a distinction between resourcerelated and other revenues, and a disentangling of tariff from commodity tax revenue. Countries' experiences vary quite widely, nonresource revenues have been essentially stagnant. Corporate tax revenues have held up, despite a reduction in rates and evidence of substantial base-narrowing-something of a puzzle-and trade tax revenue reductions have been largely offset by other measures. Options for dealing with the continuation and intensification of the challenges, which the present crisis is likely to accelerate-including through regional cooperation-are discussed.

Political Science --- Law, Politics & Government --- Public Finance --- Revenue --- Taxation --- Africa, Sub-Saharan --- Economic policy. --- Duties --- Fee system (Taxation) --- Tax policy --- Tax reform --- Taxation, Incidence of --- Taxes --- Government revenue --- Public revenue --- Finance, Public --- Corporate Taxation --- Taxation, Subsidies, and Revenue: General --- Business Taxes and Subsidies --- Trade Policy --- International Trade Organizations --- Public finance & taxation --- Corporate & business tax --- Revenue administration --- Corporate income tax --- Tax incentives --- Taxes on trade --- Consumption taxes --- Corporations --- Spendings tax --- Equatorial Guinea, Republic of

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This How to Note examines the complex interplay between excise taxes on alcohol and alcoholic beverages, their revenue yield, and the public health concerns related to alcohol consumption. The note suggests guidance on how countries can approach the design of excise taxes on alcohol based on theoretical principles as well as empirical evidence drawn from international experience. Key questions addressed include: How important is alcohol consumption, and what form does it take across countries of different income levels? What has been the trend in alcohol excise tax revenue? How can countries design simple excise regimes that yield revenue while having the potential to contribute to reducing the externalities and internalities caused by alcohol consumption?.

Alcohol tax --- Alcohol --- Business Taxes and Subsidies --- Consumption --- Currency crises --- Economic & financial crises & disasters --- Economic sectors --- Economics of specific sectors --- Economics --- Economics: General --- Excise tax --- Excise taxes --- Excises --- Financial crises --- Health economics --- Health --- Health: General --- Informal sector --- Macroeconomics --- Macroeconomics: Consumption --- National accounts --- Public finance & taxation --- Public Finance --- Revenue administration --- Revenue --- Saving --- Taxation --- Taxation, Subsidies, and Revenue: General --- Taxation, Subsidies, and Revenues: Other Sources of Revenue --- Taxes --- Wealth

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Fairness – and what governments can do about it – is at the forefront of economic and social debate all over the world. In MENA, this has been at the core of recent political transitions but has not been adequately addressed. This SDN explores how tax systems – a critical interface between the state and citizens – can play a role in meeting demands for greater economic fairness in MENA countries. The SDN finds that for countries with well-established non-hydrocarbon tax systems (mostly oil importers) reforms should focus on simplifying tax structures and introducing more progressivity of personal income taxes, broadening tax bases, and better designing and enforcing property taxes. Tax administration should be more efficient and user-friendly while simplifying tax regimes will reduce the scope for arbitrary implementation. MENA countries with less established non-hydrocarbon revenue systems can begin with a “starter pack” that includes introduction of low-rate value-added and corporate income taxes, excises, and property taxes while building up administrative capacity and taxation expertise together with plans for introducing a personal income tax. Across the region, effective communication, transparency, and constructive dialogue between the State and citizens are critical to the success of reforms.

Personal Finance -Taxation --- Public Finance --- Taxation --- Corporate Taxation --- Equity, Justice, Inequality, and Other Normative Criteria and Measurement --- Fiscal Policy --- International Relations and International Political Economy: Other --- Taxation, Subsidies, and Revenue: General --- Taxation and Subsidies: Incidence --- Personal Income and Other Nonbusiness Taxes and Subsidies --- Business Taxes and Subsidies --- Tax Evasion and Avoidance --- Public finance & taxation --- Corporate & business tax --- Revenue administration --- Income and capital gains taxes --- Personal income tax --- Corporate income tax --- Value-added tax --- Taxes --- Revenue --- Income tax --- Corporations --- Spendings tax --- Tunisia