Recession fails to halt tax reform
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 25% 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. The challenge is ensuring sufficient public revenues for the future while incentivising investment and economic growth,” said Susan Symons, partner at PwC.
