Tax reform

To my mind, the main proposals for tax reform should be as follows: Both imports and domestic consumption goods be treated uniformly, with the VAT replacing both the import duty and domestic excises over a fairly short period. Inputs (both imported and domestic) be continued to be taxed, again by a VAT structure, until the VAT reaches the retail stage. TheVAT rate structure should generally be non-uniform. Long-term revenue growth is unlikely to occur unless personal and corporate income tax can be adequately taxed. Hence the design of these taxes is of critical importance. Problems of administration, evasion, compliance and corruption are the challenges to be overcome here. A flat rate of land tax should preferably be administered by a local authority.