Examples of Successful DRM Reforms and the Role of International Co-operation
This study explores seven case studies of successful tax reforms in Asia (Bangladesh Vietnam and Afghanistan), Europe (Bosnia and Herzegovina, and Georgia), Latin America (Paraguay), and sub-Saharan Africa (Rwanda). General findings include:
• Tax reform in the case countries led to significant increases of the tax/GDP ratio. Even in fragile environments revenues increased significantly.
• Tax reform can support trade liberalisation. In some country studies the contribution of import duties to tax revenues declined during the reform period.
• Tax reforms brought other quantifiable gains. Transaction costs for the public and for business were reduced in several country studies.
• DRM has an impact on development. In each of the country studies, increased revenues funded development needs, whether education, health, or the overall development budget.