Global recession fails to halt tax reform
Number of economies refreshing their tax systems grows 25%
Tax reform has remained high on the agenda of many governments during the
past year, despite the global recession, according to a report by
PricewaterhouseCoopers and the World Bank.
The Paying Taxes 2010 report showed that the number of economies reforming
their tax systems to make it easier to pay had jumped by a quarter over last
year to 45.
The top reformer of the year was Timor-Leste, which introduced new tax law,
streamlined the business tax regime and simplified tax administration. With 10
economies reforming Eastern Europe and Central Asia had the largest number of
reforms for the third year in a row.
Corporate income tax rates were reduced in 20 economies, while 18 simplified
the process of paying taxes.
“The global recession has meant falling tax revenues and difficult tax policy
choices,” said Susan Symons, partner at PricewaterhouseCoopers. “The challenge
is ensuring sufficient public revenues for the future while incentivising
investment and economic growth.”
Further reading:
Download
the Paying Taxes 2010 report here (5.6MB)