On Tariffs and Optimal Taxation Policy in Developing Countries

Abstract

Taxes on the foreign-trade sector are substantial sources of government revenue in almost all developing countries. Thus in a number of countries - including Pakistan, Indonesia, Burma, Ceylon, Malaysia, Thailand, Nigeria, Ghana and Colombia - such taxes account for more than 40 'percent of the government revenue. The main type of trade tax has been tariffs, but in addition there have been export taxes and profits from export marketing boards, the latter being really forms of export taxes