Buoyant or Sinking? Tax Revenue Performance and Prospects in Developing Asia

Publication | May 2022

This paper examines tax revenue mobilization in developing Asia before the coronavirus disease (COVID-19) pandemic and in 2020.

Analysis suggests that short- and long-run tax buoyancy in developing Asia were close to one before COVID-19, indicating fiscal sustainability. The study estimates that in 2020 the pandemic caused these economies to lose average excess tax revenue equal to half a percentage point of 2019 GDP. It also finds that tax-to-GDP ratios are projected to improve toward 2030 in a majority of developing Asian economies, other things held constant.

Contents 

  • Abstract
  • Introduction
  • Testing Hypotheses
  • Empirical Strategy and Findings
  • Impact of COVID-19 on Tax Revenues
  • Projection of Share of Tax to Gross Domestic Product in 2030
  • Conclusions
  • Appendix

Additional Details

Authors
Type
Series
Subjects
  • Economics
  • Governance and public sector management
  • Taxation and domestic resource mobilization
Pages
  • 22
Dimensions
  • 8.5 x 11
SKU
  • WPS220182-2
ISSN
  • 2313-6537 (print)
  • 2313-6545 (electronic)

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