Taxing Consumption
Domestic consumption in most countries is taxed through general sales taxes, excise taxes on specific commodities, and a variety of miscellaneous taxes on such services as hotels and transfers of property. This note considers only the first two of these categories, with particular attention to general sales taxes. Consumption taxes are obviously related both to customs duties and other taxes on imports and also to production taxes like those often imposed on agricultural output. In some countries elements of both import and production taxation remains. These aspects are not further explored in this note other than to note that the original form of general sales taxes often consisted of a sales tax imposed on imported and domestic manufactured goods. Most countries have now replaced such 'pre-retail' sales taxes by taxes that fall primarily on consumption rather than on production and, both more responsive to revenue needs and easier to collect effectively and efficiently. However, excise taxes on specific commodities are often still imposed at the production stage.
Main Author: | |
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Language: | English |
Published: |
World Bank, Washington, DC
2009-06
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Subjects: | AGRICULTURAL OUTPUT, AGRICULTURE, ALCOHOLIC BEVERAGES, COLLECTION PROCESS, COMMODITIES, COMMODITY, COMPLIANCE COSTS, CONSUMERS, CONSUMPTION TAX, CONSUMPTION TAXES, DEVELOPING COUNTRIES, EXCISE TAX, EXCISE TAXES, EXPORTS, EXTERNALITIES, FINANCIAL SERVICES, FRAUDS, INCOME, INFLATION, INPUT TAX, JURISDICTIONS, LAND POLICY, OUTPUT, PRICE INCREASES, PROPERTY TAXATION, SALES TAX, SALES TAXES, SMALL BUSINESS, SMALL BUSINESSES, TAX ADMINISTRATION, TAX BASE, TAX COLLECTION, TAX CREDIT, TAX CREDITS, TAX POLICY, TAX RATES, TAX REFORM, TAX SYSTEMS, TAXATION, TAXES ON CONSUMPTION, TAXPAYER, TRADE SECTOR, TRANSACTION, TURNOVER, TURNOVER TAX, TURNOVER TAXES, VALUATION, |
Online Access: | http://documents.worldbank.org/curated/en/2009/06/11361883/taxing-consumption https://hdl.handle.net/10986/11115 |
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Summary: | Domestic consumption in most countries
is taxed through general sales taxes, excise taxes on
specific commodities, and a variety of miscellaneous taxes
on such services as hotels and transfers of property. This
note considers only the first two of these categories, with
particular attention to general sales taxes. Consumption
taxes are obviously related both to customs duties and other
taxes on imports and also to production taxes like those
often imposed on agricultural output. In some countries
elements of both import and production taxation remains.
These aspects are not further explored in this note other
than to note that the original form of general sales taxes
often consisted of a sales tax imposed on imported and
domestic manufactured goods. Most countries have now
replaced such 'pre-retail' sales taxes by taxes
that fall primarily on consumption rather than on production
and, both more responsive to revenue needs and easier to
collect effectively and efficiently. However, excise taxes
on specific commodities are often still imposed at the
production stage. |
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