Tax Policy in MENA Countries

Tax Policy in MENA Countries
Author: Mario Mansour
Publisher: International Monetary Fund
Total Pages: 51
Release: 2015-05-05
Genre: Business & Economics
ISBN: 1484365054

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.

Fair Taxation in the Middle East and North Africa

Fair Taxation in the Middle East and North Africa
Author: Mario Mansour
Publisher: International Monetary Fund
Total Pages: 36
Release: 2015-09-02
Genre: Business & Economics
ISBN: 1513519751

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.

Public Sector Reform in the Middle East and North Africa

Public Sector Reform in the Middle East and North Africa
Author: Robert P. Beschel
Publisher: Brookings Institution Press
Total Pages: 328
Release: 2020-12-01
Genre: Political Science
ISBN: 0815736983

Critical examinations of efforts to make governments more efficient and responsive Political upheavals and civil wars in the Middle East and North Africa (MENA) have obscured efforts by many countries in the region to reform their public sectors. Unwieldy, unresponsive—and often corrupt—governments across the region have faced new pressure, not least from their publics, to improve the quality of public services and open up their decisionmaking processes. Some of these reform efforts were under way and at least partly successful before the outbreak of the Arab Spring in 2010. Reform efforts have continued in some countries despite the many upheavals since then. This book offers a comprehensive assessment of a wide range of reform efforts in nine countries. In six cases the reforms targeted core systems of government: Jordan's restructuring of cabinet operations, the Palestinian Authority's revision of public financial management, Morocco's voluntary retirement program, human resource management reforms in Lebanon, an e-governance initiative in Dubai, and attempts to improve transparency in Tunisia. Five other reform efforts tackled line departments of government, among them Egypt's attempt to improve tax collection and Saudi Arabia's work to improve service delivery and bill collection. Some of these reform efforts were more successful than others. This book examines both the good and the bad, looking not only at what each reform accomplished but at how it was implemented. The result is a series of useful lessons on how public sector reforms can be adopted in MENA.

Subsidy Reform in the Middle East and North Africa

Subsidy Reform in the Middle East and North Africa
Author: Mr.Carlo A Sdralevich
Publisher: International Monetary Fund
Total Pages: 130
Release: 2014-07-09
Genre: Business & Economics
ISBN: 1498350437

In the Middle East and North Africa (MENA) countries price subsidies are common, especially on food and fuels. However, these are neither well targeted nor cost effective as a social protection tool, often benefiting mainly the better off instead of the poor and vulnerable. This paper explores the challenges of replacing generalized price subsidies with more equitable social safety net instruments, including the short-term inflationary effects, and describes the features of successful subsidy reforms.

Challenges of Growth and Globalization in the Middle East and North Africa

Challenges of Growth and Globalization in the Middle East and North Africa
Author: Mr.Hamid R Davoodi
Publisher: International Monetary Fund
Total Pages: 44
Release: 2003-09-05
Genre: Business & Economics
ISBN: 9781589062290

The Middle East and North Africa (MENA) is an economically diverse region. Despite undertaking economic reforms in many countries, and having considerable success in avoiding crises and achieving macroeconomic stability, the region’s economic performance in the past 30 years has been below potential. This paper takes stock of the region’s relatively weak performance, explores the reasons for this out come, and proposes an agenda for urgent reforms.

Tax Policy in MENA Countries

Tax Policy in MENA Countries
Author: Mario Mansour
Publisher: International Monetary Fund
Total Pages: 51
Release: 2015-05-05
Genre: Business & Economics
ISBN: 1484364783

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 and Growth in the Middle East and North Africa Region

Fiscal Policy and Growth in the Middle East and North Africa Region
Author: Ms.Sena Eken
Publisher: International Monetary Fund
Total Pages: 47
Release: 1997-08-01
Genre: Business & Economics
ISBN: 1451948565

Establishing a policy framework to sustain high rates of growth is a major challenge facing the economies of the Middle East and North Africa. Given the strikingly dominant role of governments in these economies, this paper focuses on the contribution of fiscal consolidation and reform toward addressing this challenge. On the basis of an examination of fiscal structures, reform and adjustment efforts, and their growth implications during 1980-95, it concludes that the ongoing process of fiscal reform—aimed at reducing budget deficits, improving the budgetary structure, and enhancing the effectiveness of government interventions—is key to ensuring macroeconomic stability and fostering growth.

Tax Administration in Developing Countries

Tax Administration in Developing Countries
Author: Mr.Charles Y. Mansfield
Publisher: International Monetary Fund
Total Pages: 26
Release: 1987-06-01
Genre: Business & Economics
ISBN: 1451975392

This paper examines the role of tax administration in developing countries from an economic perspective. The traditional separation of tax policy and tax administration in the literature is shown to break down in developing countries, where tax administrators decide in what manner complicated tax legislation should actually be applied. After surveying economic literature dealing with tax administration, the paper offers guidelines on how tax administrators can help implement more efficient and equitable tax systems.

Tax Policy and Inclusive Growth

Tax Policy and Inclusive Growth
Author: Khaled Abdel-Kader
Publisher: INTERNATIONAL MONETARY FUND
Total Pages: 38
Release: 2020-12-04
Genre: Business & Economics
ISBN: 9781513561561

This paper discusses the theory and practice of tax design to achieve an efficient and equitable outcome, i.e. in support of inclusive growth. It starts with a discussion of the key principles from tax theory to guide practical tax design. Then, it elaborates on more granular tax policy, discussing key choices in the structure of the personal income tax on labor and capital income, taxes on wealth, the corporate income tax, and consumption taxes. The paper concludes by highlighting the political economy considerations of the issues with concrete recommedtions as to how to implement tax reform.

State-Owned Enterprises in Middle East, North Africa, and Central Asia: Size, Costs, and Challenges

State-Owned Enterprises in Middle East, North Africa, and Central Asia: Size, Costs, and Challenges
Author: Mr. Ernesto Ramirez Rigo
Publisher: International Monetary Fund
Total Pages: 153
Release: 2021-09-20
Genre: Business & Economics
ISBN: 1513594087

Prior to the COVID-19 shock, the key challenge facing policymakers in the Middle East, North Africa, and Central Asia region was how to generate strong, sustainable, job-rich, inclusive growth. Post-COVID-19, this challenge has only grown given the additional reduction in fiscal space due to the crisis and the increased need to support the recovery. The sizable state-owned enterprise (SOE) footprint in the region, together with its cost to the government, call for revisiting the SOE sector to help open fiscal space and look for growth opportunities.