WB must stop en­cour­ag­ing harm­ful tax com­pe­ti­tion

Iran Daily - - Tse & Global Economy -

in­crease thresh­old and ex­emp­tions) and neg­a­tively con­sid­er­ing those that in­tro­duce new taxes, DB is es­sen­tially en­cour­ag­ing tax com­pe­ti­tion among de­vel­op­ing coun­tries.

Thus, the World Bank is ig­nor­ing re­search at the OECD and IMF which has not found any con­vinc­ing ev­i­dence that lower cor­po­rate tax rates or other fis­cal con­ces­sions have any pos­i­tive im­pact on for­eign di­rect in­vest­ment.

In­stead, they found net ad­verse im­pacts of tax con­ces­sions and fis­cal in­cen­tives on govern­ment rev­enues. Ac­cord­ing to the re­search, fac­tors such as the avail­abil­ity and qual­ity of in­fra­struc­ture and hu­man re­sources were more im­por­tant for in­vest­ment de­ci­sions than taxes.

More­over, the World Bank’s En­ter­prise Sur­veys do not find pay­ing taxes to


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