Taxation and consent : implications for developing nations

Abstract

This policy-oriented chapter draws specific lessons from the historical narratives of previous chapters that should be of interest to tax policymakers and policy activists in developing nations today. The chapter attempts to answer the “So What?” question by drawing on the historical analyses of previous chapters. The chapter highlights what has worked well in different countries and the tax policies that have been less successful at generating taxpayer consent. It also examines why some policies have been less successful over time in different countries. It argues that states which have been most successful in generating high levels of compliance (1) develop strong administrative capacities, (2) treat taxpayers equitably, (3) generate a common sense of purpose or identity, and (4) do not discriminate in favor or against specific segments of society.