Leveraging Central Asia’s Rare Earth Elements for Economic Growth

December 2023 | Wilder Alejandro Sanchez, Ariel Cohen, and Wesley Alexander Hill | Download

“While the report offers steps Central Asian nations to take advantage of this increasingly important global market, its call to action applies with equal force to nations outside the region, not least the United States, to recognize the importance of Central Asia to this highly significant global market and act with urgency to build the ties that will ensure the US and Western countries have access to REEs in a highly competitive global market.  The report aims to spur action to seize this unique opportunity.”

Thirty Years of Global Taxation Policy — and the Future

Reprinted from Tax Notes International, October 2, 2023, p. 83 | Daniel A. Witt

In this article, Witt considers the landscape of global tax policy and important considerations for future growth as the International Tax and Investment Center celebrates its 30th anniversary this October. Full Article

Tax Policy’s Role in Attracting Investment for Global Development

Bloomberg Tax | April 26, 2023 | Abdulrahman A. Al-Hamidy & Daniel A. Witt

Daily Tax Report: International: “Abdulrahman A. Al-Hamidy of the Arab Monetary Fund and Daniel Witt of the International Tax and Investment Center discuss how reforms in tax administration can increase compliance and revenue, promoting economic growth on a global level.” Full Article

Implications of the Interaction of Trade and Tax Rules

by Hafiz Choudhury, Peter Hann and Daniel Witt

Part One: BRI Tax Journal (Vol 3. No. 1 2022) | Part Two: BRI Tax Journal (Vol 3. No.2 2022)

Abstract: “Trade, investment and tax treaties are concluded for different reasons and with different objectives. The international trade and tax systems are overseen by different global organizations. The overlaps and inconsistencies between these agreements could be exploited by investors to gain unintended advantages. Therefore, developing countries must ensure that there is greater cooperation and exchange of information in relation to trade, investment and tax policy.

The exchange of information between tax administrations is important in the context of the Belt and Road Initiative (BRI), where the tax administration in each jurisdiction needs to know more about the cross-border transactions of multinationals operating in its territory. The most effective way for developing countries to improve the exchange of information is to sign multilateral agreements, in particular the Convention on Mutual Assistance in Tax Matters.

The customs and transfer pricing functions within a jurisdiction should collaborate and exchange information to ensure that the pricing of import transactions is consistent across different taxes. Both functions could carry out risk-based compliance audits that would involve comparison of transfer pricing and customs documentation. In the context of coordination between customs and direct tax functions, the comparison of customs and transfer pricing documentation can be established on a routine basis. Closer coordination of transfer pricing and customs would also help taxpayers reduce compliance costs in relation to cross-border transactions. In view of the compliance costs involved in putting together transfer pricing documentation, it would help taxpayers if much of the same documentation could also be used for the purposes of customs valuation.”

Central Asia: A Source of Energy for the 21st Century

November 2022 | Ariel Cohen, Ph.D., Wesley A. Hill, and Daniel Tomares | Download

“This report analyzes opportunities for Central Asia to expand its energy-exporting capacities, fortifying and assuaging a disrupted international system reeling from Russian aggression and its lack of reliability as an energy supplier. This report engages with four axes of analysis: 1) the potential of Central Asia’s natural resources to meet current energy demand, 2) what infrastructure exists or would need to exist to export these resources, 3) whether the Central Asian Republics (CARs) are sufficiently stable to be reliable economic partners, and 4) whether proximity and ties to Russia and China pose an obstacle to the development of a partnership.”

Understanding the Drivers of Illicit Alcohol: An Analysis of Selected Country Case Studies

Published by World Customs Journal Edition (Volume 16, Number 2, September 2022) | Daniel Witt and János Nagy | Download

Abstract: In addition to depriving governments of revenue from legitimate economic actors, the illicit alcohol trade is a major threat to public health. The World Health Organization’s (WHO) 2017 guidance on alcohol taxation has been influential in driving policies on this subject, particularly in developing countries. However, their analysis and limited academic literature do not fully account for the distinction between the licit and illicit markets, even though the illicit market leads to serious public health risks. Complementary to the WHO’s concerns, this paper seeks to add an additional perspective by suggesting that high rates of tax cause diversion to the illicit market, and the analysis of that market should include the effects of taxation. Government policies on alcohol and taxation should therefore account for the illicit market and avoid diversion to it, to reduce harm to public health. The paper offers an analysis and recommendations for customs, tax, and public health officials to discourage the illicit market and avoid tax leakage, such as use of tax stamps, coordination with industry and more holistic enforcement measures. Several case studies, using data from an international consultancy that has researched the illicit market, illustrate the themes of the article. The authors call for additional research in the academic community to further define the causal relationship between tax, affordability, and the size of the illicit market and to tailor enforcement strategies that address specific aspects of the illicit market in particular countries. The serious health risks associated with illicit alcohol consumption make such research a necessary and complementary component of WHO efforts to advance public health

Tax and Post-Pandemic Recovery-a Perspective from Arab Countries

Bloomberg Tax | May 26, 2022 | Abdulrahman A. Al-Hamidy & Daniel A. Witt

Daily Tax Report: International: “Abdulrahman A. Al-Hamidy of the the Arab Monetary Fund and Daniel A. Witt of the International Tax and Investment Center discuss how governments in Arab countries can address the fiscal challenges they face post Covid and restart vitally needed economic growth.” Full Article

Implications of the Interaction of Trade and Tax Rules

Tax Notes International (Volume 105, Number 3, January 17, 2022) | Peter Hann and Hafiz Choudhury | Full Article

“In this article, Hann and Choudhury consider how tax treaties, trade agreements, and other cross-border arrangements may be used to improve investment, trade, tax policy, administration, and dispute resolution.”

Tax Policies Supporting Growth and Sustainable and Equitable Development in Post-COVID Economic Recovery Period

Belt and Road Initiative Tax Journal (Vol 2. No. 2 2021) | Peter Hann, Hafiz Choudhury, and Daniel Witt | Full Article

Abstract: “As the pandemic begins to ease in some places, the support made available to individuals and businesses should be gradually phased out and replaced by spending to encourage economic growth and employment. While businesses and individuals are recovering from the problems caused by the pandemic, revenue from corporate and individual income taxes may be reduced. Additional tax revenues can however be gained from improved taxation of the digital economy and the opportunities to identify undisclosed income sources arising from agreements for the exchange of tax information. 

Jurisdictions must modernise tax administration to improve taxpayer compliance and reduce the size of the informal and shadow economies. Modernisation and digitalisation of tax administration can significantly improve tax collection. Using the dialogue process under BRITACOM, the BRI jurisdictions can benefit from the experience of other developing jurisdictions and receive technical support to improve tax administration and collection. 

Tax incentives could be used to encourage businesses to invest in the digital and green energy sectors. These incentives should be specifically framed and targeted to achieve the maximum effect and monitored to ensure that they continue to achieve the required goals.”

Achieving Global Post-Pandemic Recovery

Bloomberg Tax | Nov. 5, 2021 | Daniel A. Witt

Tax Insights & Commentary: “Governments around the world are looking to plan for economic recovery after the Covid-19 pandemic. Daniel A. Witt of the International Tax and Investment Center reviews the lessons to be learned and argues that encouraging the private sector and fixing tax systems as drivers of growth is the way forward.” Full Article

30 Years of Bilateral Ties: The Special U.S.-Kazakhstan Relationship

September 2021 | Ariel Cohen, Ph.D., James Grant, and Douglas Townsend | Download

The fifth report from ITIC’s Energy, Growth, and Security (EGS) program illustrates, analyzes, and projects the condition of U.S.-Kazakhstan relationships, including the trajectory set forth by First President Nursultan Nazarbayev upon Kazakhstan’s independence 30 years ago.

COVID-19 Recovery: From Government Response to Private Sector-Led Sustainable Growth

29 September 2021 | Video Replay & Additional Resources

In collaboration with the Arab Monetary Fund, ITIC hosted a panel session in the Civil Society Policy Forum on 29 September 2021 as part of the 2021 IMF-World Bank Annual Meetings featuring presentations by Gabriel Sterne (Head of Global Strategy Services and Emerging Markets Macro Research; Oxford Economics); Dr. Manal Abdel Samad (Advisor to the Minister of Finance and former Minister of Information, Lebanese Republic) and Mario Mansour (Chief, Tax Policy Division I, International Monetary Fund).

Foreign Investment in Central Asia: Actors and Drivers

Issues Paper: December 2020 | Dr. Ariel Cohen and James Grant | Download

The last 30 years of transformational growth have delivered for the people of Central Asia progress and prosperity. This report examines the policies that have helped to fuel that growth. At the same time, Central Asia has numerous country-specific and region-wide challenges that each nation must address in order to achieve its developmental potential.

Post-COVID-19 Paper Series

September-October 2020 | Eight-Part Series | More Information | Webinar Replays

The eight-paper series, Post-COVID-19: How Governments Should Respond to Fiscal Challenges to Spur Economic Recovery, has been published by Tax Notes International and is now available on TaxNotes.com.

1. Post-COVID-19: Responding to the Fiscal Challenges by Charles McLure

2. Coronavirus — Fiscal Challenges for Emerging Markets by Oxford Economics

3. Post-COVID Corporate Tax Policy by Prof. Jack Mintz

4. Global Tax Policy Challenges After COVID-19: Transfer Pricing and Withholding Tax Aspects by Hafiz Choudhury and Peter Hann

5. VAT in and After the Pandemic by Prof. Richard Bird

6. Using Excise Taxes to Increase Government Revenue Post-COVID-19 by Elizabeth Allen

7. Oil and Gas Fiscal Policies: The Impact of Oil Price, Investment, and Production Trend by Carole Nakhle and Theo Acheampong

8. Taxation of SMEs to Support Economic Recovery Post-COVID-19 by Elizabeth Allen and David Child

To view the full compendium series, click here.

Webinar: Relocating Investment to Indonesia in the Time of COVID-19: Opportunity and Challenge

August 2020 | Video Replay & Additional Resources

ITIC joined with the Institute for Development of Economics and Finance (INDEF) and The Jakarta Post to host a webinar on Relocating Investment to Indonesia in the Time of COVID-19: Opportunity and Challenge, featuring keynote speakers Bahlil Lahadalia (Chairman, Indonesian Investment Coordinating Board) and Agus Gumiwang Kartasamita (Indonesia’s Minister of Industry).

Taxing Sugary Drinks

Issues Paper: July 2020 | Roy Bahl and Richard Bird | Download

Abstract: Countries everywhere are considering the increasing evidence on the possible health benefits from reducing the consumption of sugary drinks — often called sugar-sweetened beverages (SSB). This paper examines the rationale for taxing sugary drinks as a way to reduce sugar consumption and considers the experience to date. That excess consumption of sugar has serious adverse health consequences and that taxing sugar-sweetened beverages (SSB) may reduce the consumption of sugar are both largely supported by the evidence. What is less clear is whether SSB taxes can adequately address the problems arising from the excess consumption of sugar. If so, the question becomes how taxes might best be structured to do the job.

Post COVID-19: Building Resilience in Central Asia

Issues Paper: June 2020 | Dr. Ariel Cohen and James Grant | Download

This timely and edifying paper details COVID-19’s impact on Central Asia while outlining policy solutions for recovery. The main topic of this report is resilience – the ability of each nation to adapt to current crises and mitigate against future shocks.

Securing Capital Investment in Ukraine’s Grid: The Road to the Future

Issues Paper: June 2020 | Dr. Ariel Cohen and Vladislav Inozemtsev | Download

In this paper, Drs. Ariel Cohen and Vladislav Inozemtsev present both the challenges of introducing a Regulatory Asset Base (RAB) tariff regulation in Ukraine’s electricity sector and the benefits it may bring to the industry, consumers, and the public finances of Ukraine. [Webinar Replay]

Webinar: Tax Policy Responses to COVID-19

June 2020 | Video Replay & Additional Resources

ITIC’s webinar on the Tax Policy Responses to COVID-19 featured a discussion on tax policy solutions that can help address the consequences of the COVID-19 pandemic, as well as what's happening at the multilateral level, local level (developing countries with an energy industry), and planetary level (climate change).

COVID-19 Fiscal Stimulus Measures in China’s Belt and Road Countries

“Featured Analysis” by Tax Notes (8 May 2020) | Peter Hann, Hafiz Choudhury, and Daniel Witt | Full Article

“In this article, the authors review tax measures to address the economic impact of the COVID-19 pandemic and identify the most effective steps, then compare the situation with that of the financial crisis of 2008-2009, focusing on China and key nations in China’s Belt and Road Initiative.” Full Article

Webinar: Sustainability Challenges in the Energy Sector

May 2020 | Video Replay & Additional Resources

ITIC’s webinar on the Sustainability Challenges in the Energy Sector featured a discussion focused on the economic and fiscal challenges currently facing the energy sector, including the state of the energy market, possible government responses, and the relevant fiscal policy work undertaken by the United Nations.

Best Practice Principles for Design and Administration of VAT/GST in a Federal State System

November 2019 | View

Best Practices in the Design of a Direct Tax System

November 2019 | View

Soft Infrastructure Development in Central Asia 2020

Issues Paper: October 2019 | Dr. Ariel Cohen and James Grant | Download

As readers will discover in Soft Infrastructure Development in Central Asia 2020, the effectiveness of soft infrastructure development often must be measured indirectly through statistics such as the perception of corruption rather than directly. Ultimately, the best measure of how well soft infrastructure has developed is the relative success of nations’ economies, since those with weak soft infrastructure will inevitably lag behind similarly endowed nations with stronger commitment to rule of law and a healthy, open business environment…”

[excerpt from Forward by Ambassador Kenneth J. Fairfax]

Belt and Road Initiative: Removing Tax Obstacles and Strengthening Cooperation for Investments to Deliver Growth and Development

BRITACOM Special Edition: Building a Growth-Friendly Tax Environment in collaboration with International Taxation in China (April 2019) | Daniel Witt and Hafiz Choudhury | View Article

“The Belt and Road Initiative (BRI) is a pioneering initiative that involves investment flows from East to West and between countries of the Global South. This represents a major shift in international investment flows, the most significant since at least the 17th century, and certainly since the First World War. By changing the traditional paradigm of the West as the primary source of capital and ideas, and the direction of international investment and technology flows from the Global South, the BRI initiative represents a major shift in global economic relations.

The initiative is also remarkable in the way it has sought to involve a mix of public and private sector capital, with the Chinese government providing the strategic direction while the main source of investment capital is private sector institutions. Another pioneering measure has been the adoption of international best practices in procurement and environmental standards, where approaches developed by the World Bank Group are reported to have been widely utilized. While there are some questions about the dominance of Chinese firms in the contracts awarded, the research shows that a number of Western firms have won sizeable contracts and investment concessions.”

China MNEs BRI Tax Workshops Report

April 2019 | View Report

In coordination with the first Belt and Road Initiative Tax Cooperation Forum (BRITACOF) meeting held in Wuzhen, Zhejiang province on 18 April 2019, and approved by the State Taxation Administration (STA), the China Chamber of International Commerce (CCOIC), China International Taxation Research Institution (CITRI), and International Tax and Investment Center (ITIC) jointly held China MNEs BRI Tax Workshops on 23-24 April 2019. Representatives from e-commerce, engineering construction, and energy extraction, were invited to discuss the major tax issues and difficulties they have encountered in the process of “going out” in BRI Countries (regions).

This report briefly introduces the basic situation for China MNEs, summarizes the common tax issues encountered by China MNEs in the BRI countries (regions), and puts forward corresponding suggestions for improvement.

Taxing Sugar in Food and Beverage Products

ITIC Guidebook: March 2019 | Liz Allen and David Child | Download

“…There is no “one size fits all” recipe for a sugar tax but the most common approach to date has been to tax sugar sweetened beverages (SSBs) using an excise tax, as part of a strategic plan to reduce obesity in society. Because the sugar tax has been introduced so recently in several countries its long term impact on health based on actual evidence has yet to be established. Most of the studies that report health improvements are modelling studies that have assumed a meaningful change in sugar intake with no compensatory substitution, rather than being based on observations of real behaviour. The exception is a WHO study in 2015 based on actual experience with sugar taxes particularly in Hungary, and this identified an impact on health outcomes.

If the priority is to tackle the health issues then there are other ways of achieving reductions in sugar/unhealthy food consumption such as legislation or agreed codes of practice with industry to require food and drink products to contain less than a certain amount of added sugar. Governments may try to persuade industry with ‘codes of practice’ and use taxation only on as a last resort. On the other hand, if revenue is needed to fund government initiatives, then a sugar tax based on the amount of sugar or added sugar in the product can be very useful and act very like a specific (or volumetric) tiered tax on alcoholic beverages…”

Taxing the Telecommunications Industry

ITIC Guidebook: March 2019 | David Child and Liz Allen | Download

Why Upstream Oil and Gas Poses Lower Transfer Pricing Risks Than Other Industries

Published in Tax Notes International (Volume 93, Number 2, January 14, 2019) | David Delahay and Karl Schmalz | View Article

“This article highlights and describes the unique characteristics of the upstream oil and gas industry and explains why and how they limit the local country’s revenue risk stemming from transfer pricing. That there is widely and publicly available pricing information for oil operates on the revenue side to enable governments to assure themselves that transfer pricing associated with sales of crude oil to related parties is in fact arm’s length. The combination of the fact that most large-scale oil and gas projects are conducted in joint ventures among several companies (often including a national oil company) and that any related-party costs charged to the joint venture are at cost, with no profit element, lets governments verify transfer pricing for most costs incurred. That is not to say that there are no transfer pricing risks for international oil companies, and this article attempts to identify areas of most potential concern. However, because of the characteristics discussed, the areas (and in most cases, even the amounts) involved in transfer pricing risks are more limited than for many other industries.” View Article

Future Calling: Infrastructure Development in Central Asia

Issues Paper: October 2018 | Dr. Ariel Cohen and James Grant | Download

“Development debates often focus on natural curses and blessings. For some countries, being landlocked is a curse resulting in difficult and costly access to/from markets. However, for the countries comprising Central Asia, most notably Kazakhstan and Uzbekistan, in ancient times and today, being landlocked has been a blessing. The Silk Road puts Central Asia in the crossroads of the East-West and North-South trade routes.

Infrastructure is the key to exploiting this location and transforming it into economic development and prosperity for the people of the region. Much of the attention focuses on the hard infrastructure: pipelines, railways, highways, and communications networks. Going back to ancient times, such infrastructure allowed markets to function and grow by connecting supply and demand and maximizing the value of the region’s natural resources.”

[excerpt from Foreword by Daniel A. Witt]

Are global taxes feasible?

International Tax and Public Finance (2018) | Richard Bird | View Paper

Abstract: Over the years, many proposals for global taxes—taxes levied on a worldwide basis—have been made. None has been successful, essentially because one cannot have global taxes without a global government. This paper first reviews some major global taxes that have been proposed and then considers whether experience in two other spheres in which countries deal with each other to resolve fiscal questions—the financing of international organizations and international taxation (how national taxes deal with cross-border flows)—offers any lessons about the feasibility of a global tax. Since countries have little appetite for giving up fiscal sovereignty or for explicitly redistributive fiscal arrangements, most past global tax proposals had little or no prospect of success. But less ambitious attempts to develop a more ‘global’ approach to taxation through a transparent process that involves most who are affected, provides them some demonstrable benefit to all, and remains firmly under national control may perhaps over time move us a bit closer toward achieving the better world that global tax proponents presumably wish to achieve.

The Development of Modern Revenue Controls on Alcoholic Beverages

Published by World Customs Journal Edition (Vol. 11, Number 2, September 2017) | Doug Godden and Liz Allen | Download

Tax stamps are used by regulators in approximately fifty countries globally (see Annexe A for list of countries) in an attempt to protect alcohol tax revenues. This report assesses the effectiveness or otherwise of such systems and takes a closer look at the factors critical to determining the overall success of tax stamps and related technologies.

We show that, in isolation, tax stamps are a sub-optimal policy choice from both an efficacy and efficiency perspective. Instead, the goals of curbing illicit trade in alcohol and protecting tax revenues require a much wider package of effective monitoring, control and enforcement measures. High and discriminatory rates of tax should also be avoided as these incentivize illicit trade.

Comprehensive Tax Reform in the Philippines: Principles, History and Recommendations

ITIC Special Study: September 2016 | Professor Renato E. Reside, Jr. and Hon. Prof. Lee Burns | Download

The term “tax system” as used in this report refers to the collection of taxes that a government uses to raise revenue to support its expenditure programs. Tax systems are usually judged against the standard criteria of equity (or fairness), efficiency (or neutrality) and simplicity. Further, tax systems must raise sufficient revenue to meet the needs of government and be sufficiently flexible to deal with short-term economic fluctuations.

Globalization has put additional pressure on tax systems so that they are attractive to foreign investors. Tax systems should foster economic growth through efficient design that limits distortions and attracts foreign investment.

Capital Gains Issues in the Extractive Industries

Published by Tax Notes International (Volume 84, Number 1, October 3, 2016) | Karl Schmalz

This paper describes some of the issues for a country to consider in determining whether, and the extent to which, it should tax natural resource related capital gains. Before making this determination, each country should consider the tax policy it wishes to adopt with respect to capital gains for taxpayers across all industries, not just the extractive sector. View Paper

Review of the OECD's Working Paper on Tax Design for Inclusive Growth

ITIC Report: August 2016 | Hafiz Choudhury | Download

On 20 July 2016 the OECD’s Centre for Tax Policy and Administration issued a working paper entitled “Tax Design for Inclusive Economic Growth,” which examines the design features of tax systems and how they can be strengthened to support inclusive economic growth. The paper was discussed at the ministerial-level G20 Tax Symposium on 23 July, just before the meeting of G20 Finance Ministers and Central Bank Governors on 23-24 July 2016.

This latest working paper follows an OECD report in 2008 entitled Tax and Economic Growth, which analyzed the impact of taxes on economic growth from an efficiency perspective. The current paper attempts a fresh assessment of the 2008 policy recommendations with a greater emphasis on equity considerations based on developments in academic literature and tax policy over the last several years.

The Impact of Selective Food and Non-Alcoholic Beverage Taxes

Issues Paper: June 2016 | Download

Use of targeted taxes on specific types of food and drink is on the rise around the world. Concerns over lifestyle-related Non-Communicable Diseases (NCDs) and associated risk factors, coupled with increasing fiscal pressures, have led to growing government interest in the use of selective food and non-alcoholic beverages taxes (SFBTs). 

Whether such taxes are successful in meeting either of these outcomes depends on four main factors.

The first factor in determining the effectiveness of SFBTs is the extent to which such taxes are passed through to the prices that consumers pay. It is very difficult to predict the pass-through rate before a tax is introduced given the complexity of determinants that feed into it—including the structure of the tax, the portfolio of products it applies to, and the intensity of competition between firms in that sector. Most studies positing potential health benefits from SFBTs are based on simulations of changes in demand that would result from price changes. But such studies do not necessarily consider that, in some cases, consumers see little or no increase in prices as they are instead absorbed by producers or retailers.

Principles for Developing Country Hydrocarbon Investment Policies

January 2016 | View

The International Tax and Investment Center, a nonprofit research and educational organization, has developed a set of principles for hydrocarbon investment policies that experts believe will assist in the dialogue between developing countries and prospective oil and gas exploration and development investors. The Principles for Developing Country Hydrocarbon Investment Policies are designed as a possible framework for collaboration between countries and investors to ensure countries obtain full value for their resources while attracting and sustaining the substantial investments and operational expertise needed for efficient, safe and environmentally sound resource development. Consistent with ITIC’s mission to bring parties together for dialogue on important fiscal, taxation, and investment policy issues, this set of oil and gas investment principles is an important starting point for countries and investors as they seek to work together in promoting economic development and attracting international investment.

These principles are a product of extensive dialogue among several leading international financial institutions and a number of oil and gas companies with vast international experience.  The principles were finalized and adopted by ITIC’s Oil and Gas Taxation and Regulatory Working Group, which will facilitate discussion of the principles with officials in various countries as we as multiple-stakeholder sessions.

The Drive Towards Coordinating Trade Regulation and International Tax Rules

Published by Tax Journal (Issue 1289, 11 December 2015) | Pascal Lamy and Hafiz Choudhury

Speed Read: More thought needs to be given about the interaction of tax and trade regimes. Global trade policy has focused on the broad scope of obstacles to trading, while international tax policy has traditionally focused on avoiding double taxation. Both tax and trade are key drivers for economic policy; however, in recent years, there have been instances where taxes have distorted trade rules, and vice versa. e rising awareness of potentially abusive tax practices has resulted in recent multinational initiatives, such as the BEPS Action Plan and EC rulings on illegal state aid, which are designed to deliver greater ‘fairness’ in tax. Whilst this is a generally acceptable goal, governments should ensure that global tax and trade policies are supportive of each other. Global trade rules should not move away from the principle of equal treatment and the goal of a fair and equitable trading system. An open, transparent tax system, consistent with trade obligations, can be a nation’s most important trade policy. View Article

ASEAN Excise Tax Reform: A Resource Manual

May 2015 | Download

"ASEAN Excise Tax Reform: A Resource Manual" represents the final phase of the most comprehensive analysis of excise taxation of the ASEAN region ever undertaken. The purpose of this publication is to act as a resource manual for policymakers and a roadmap to excise tax reform. In addition to this Resource Manual, experts have developed the “ASEAN Excise Working Tariff Schedule” which maps out the taxation of all excisable goods and services in the 10 member states, including links to all the relevant national excise tax legislation and a comprehensive “Discussion Paper.” 

The Resource Manual is a result of over two years of active engagement between Ministry of Finance policymakers and excise tax administrators from the member states and the Asia-Pacific Tax Forum expert team. As with most ASEAN undertakings, it was a collaborative effort. The end result provides policymakers with a roadmap to excise taxation in a more closely integrated region.

Standardization will become increasingly important as the region moves towards the ASEAN Economic Community (AEC), which is due to commence on 31 December 2015. Harmonization and standardization of areas such as the definitions of both the key goods subject to excise and their tax bases will improve the intra-regional trade and investment of excisable goods around the region, as well as in many cases, improve compliance in the distribution and reduction of tax evasion.

This new Resource Manual fully respects national tax sovereignty. The authors focus on how to improve the existing tax regimes that are diverse in their approach and range of goods and services covered, to provide a path for reform, standardization, and the adoption of best practice excise tax systems. These reforms, if carried out correctly, can help foster economic growth and higher budget revenues in each of the ASEAN member states. This comprehensive Resource Manual will provide policymakers with the resources to develop and implement such policies in each of their countries.

Dr. Suthad Setboonsarng
Senior Advisor, International Tax and Investment Center and former ASEAN Deputy Secretary General

Additional Languages Available:  

Indonesian

Vietnamese

Thai

Tax Administration Priorities in Emerging and Frontier Markets

Issues Paper: October 2014 | Download

The subject of global corporations not paying their “fair” share of taxes has been the subject of public discourse for more than three years, and international tax rules such as transfer pricing a subject for discussion in daily newspapers. There are widespread concerns that multinational enterprises (MNEs) are active participants in undermining the tax base of developed as well as developing countries, and the new Action Plan on BEPS can be seen as one outcome of this thinking. Concerted global action on addressing risks to tax bases from cross-border activity is at an unprecedented level, and the tax world is presently full of uncertainty. National action following publication of the full action plans for BEPS are very much an unknown, and this is most true of emerging and frontier markets.

Tax Policy Tenets

From its inception, ITIC has consistently advanced several tenets of effective tax policy. View