Some International Issues in Commodity Taxation

July 1, 2002

Preview Citation

Format: Chicago

Michael Keen. Some International Issues in Commodity Taxation, (USA: International Monetary Fund, 2002) accessed November 12, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper reviews issues and evidence concerning tax-motivated, cross-border commodity transactions. A distinction is drawn between "arbitrage trades" (driven by cross-country differences in tax rates) and "tax not paid" transactions (motivated by the opportunity to pay no tax at all on transactions with international aspects). Assessment of the severity of the associated policy problems faces the difficulty that the observed extent of cross-border transactions conveys no information on the induced inefficiency that the possibility of such transactions may generate. Given the difficulty of securing coordination of national tax policies, much of the emphasis in dealing with these problems in the coming years is likely to be on administrative cooperation.

Subject: Arbitrage, Commodities, Consumption taxes, Revenue administration, Subnational tax, Taxes, Value-added tax

Keywords: Arbitrage, Commodity Taxation, Consumption taxes, Cross-border shopping, Cross-border transaction, Destination state, Eastern Europe, Monopoly power, Sales tax, Small country, State excise, Subnational tax, Tax competition, Tennessee state tax rate, Value-added tax, WP

Publication Details

Pages:

27
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2002/124
Stock No:

WPIEA1242002
ISBN:

9781451854732
ISSN:

1018-5941

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