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Personal Income Tax Has Untapped Potential in Poorer Countries (Benedek et al.)

Personal Income Tax Has Untapped Potential in Poorer Countries by Dora Benedek, Juan Carlos Benítez, and Charles Vellutini published by IMFBlog (3/2022).

“Developing countries have shown remarkable progress in using the personal income tax.

Many governments aiming to achieve a durable economic recovery from the pandemic must raise significant amounts of revenue in the fairest way possible. The personal income tax—levied on wages, salaries, and other income—is a suitable instrument for this challenge. In new research, we examine the scope for making greater use of this fiscal tool in developing countries, where many people earn a living at low incomes…”

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