Problem
Distorting effects of commodity taxes on the transaction of goods and nonfactor services
Nature:
In most developing countries commodity taxes account for 50 to 70% of of all tax revenue. Governments often rely heavily on the domestic production taxes that distort the transactions between producers. Succeeding transactions add tax to that already paid previously by producers or distributors. The price of outputs increases and generates differential taxation of consumption.
Broader Problems:
Distortionary tax systems Aggravates:
Prohibitive cost of imported goods Strategies:
Trading commodities Subject(s):
Commerce → MerchandiseCommerce → Taxation
Industry → Commodities
Social Activity → Services
Societal Problems → Distortion
Related UN Sustainable Development Goals:
Problem Type:
E: Emanations of other problems Date of last update
04.10.2020 – 22:48 CEST