2013年-世界发展银行全球_Tax_at_a_Glance_for_ECA_Countries_83页_4mb

2013 ECA Tax-at-a-Glance Summary

Core Content

The Tax-at-a-Glance (TaaG) report provides an overview of tax policy, administration, and reform trends in the Eastern Europe and Central Asia (ECA) region. It highlights the challenges and improvements in tax systems, focusing on Value-added Tax (VAT), Corporate Income Tax (CIT), and Personal Income Tax (PIT). The report also evaluates the ease of paying taxes and outlines the organizational structure and weaknesses in tax administration across ECA countries.

Main Trends and Key Points

1. Government Tax Revenue

• In 2011, tax revenues (including social contributions) accounted for 76.8% of total general government revenue in the ECA region.
• Tax revenue represented 26.4% of GDP in 2011, showing a decline from 2008 to 2010 (23.8%, 22.5%, and 22.3%, respectively).
• EU-11 countries had a higher tax-to-GDP ratio than Central Asian countries.
• Slovenia, Hungary, and the Czech Republic had the highest tax-to-GDP ratios (37.5%, 37.1%, and 34.5%, respectively), while Lithuania and Croatia had the lowest (26.4% and 20.1%, respectively).
• OECD countries had twice the tax revenue of ECA countries.

2. Key Features of the Tax System

• Tax productivity is defined as the tax as a percentage of the tax base (GDP or consumption) divided by the standard tax rate.
• VAT productivity was generally low in ECA, especially in Azerbaijan (0.24) and Kazakhstan (0.27), indicating inefficiencies in tax collection.
• Kazakhstan had the highest CIT productivity (0.41), driven by high CIT revenue yield (8.2% of GDP), largely due to its oil and gas sector.
• Tajikistan had the lowest CIT productivity (0.06), attributed to weak tax administration and difficulty in collecting from informal sectors.
• PIT productivity was also low in ECA, with Armenia (0.09) and Azerbaijan (0.05) having the lowest.
• High top marginal PIT rates in some countries (e.g., Armenia at 25%) compared to CIT rates (e.g., Armenia at 20%) created inequality and tax evasion issues.

3. Ease of Paying Taxes

• The ease of paying taxes is evaluated using three indicators: number of payments, time to comply, and total tax rate.
• Ukraine had the largest reduction in time to comply, dropping from 2,085 hours in 2004 to 491 hours in 2011, due to electronic filing and payment systems.
• Tajikistan ranked 175th out of 183 countries in ease of paying taxes, far below the ECA average of 95th.
• Tajikistan and Armenia had high compliance costs, with Armenia’s tax compliance costs estimated at 0.3% of GDP and 17.5% of turnover for small businesses.
• Electronic filing and payment systems significantly improved the ease of paying taxes in countries like Belarus, Azerbaijan, and Ukraine.

4. Tax Administration Structure

• Most ECA countries have Large Taxpayer Units.
• Eight countries (Serbia, Ukraine, Hungary, Slovenia, Slovak Republic, Bulgaria, Romania, and Turkey) have semi-autonomous revenue authorities.
• In 2011, Croatia, Serbia, and the Czech Republic had the highest number of field tax offices per million people (33, 24, and 21, respectively), while Azerbaijan, Lithuania, Latvia, and Bulgaria had the lowest (2, 3, 4, and 4, respectively).
• A trend toward virtual offices is observed, which helps reduce corruption and improve efficiency.

Key Weaknesses in Tax Administration

• Inefficient tax administration and poor staff training have been a major issue.
• Tax evasion is widespread due to inefficient management and lack of modern technologies.
• Inequality in tax systems is exacerbated by high tax rates on personal income and low CIT yields.
• Corruption and complex tax regimes increase compliance costs and reduce tax efficiency.
• Weak capacity in detecting tax evasion and formulating tax policies has hindered progress in many ECA countries.

Conclusion

The report underscores the need for tax reform in ECA countries, emphasizing improving tax productivity, reducing compliance costs, and enhancing the efficiency and fairness of tax systems. It also highlights the importance of modernizing tax administration through electronic systems, training, and policy reforms to attract investment and foster economic growth.