Write short notes on the causes of the ongoing outcry in developing countries following
poor performanceof the tax revenues. What should be done?
The causes of the outcry in developing countries following poor performance of the tax revenues are largely due to the lack of effective tax collection systems, inadequate tax base, and the prevalence of tax evasion and avoidance. In many developing countries, the tax base is narrow and the tax rates are high, leading to a situation where the wealthy and powerful are able to evade taxes while the poor and vulnerable are unable to do so. This has resulted in a situation where the government is unable to collect enough revenue to fund public services and infrastructure.
In order to address this issue, governments in developing countries should focus on improving their tax collection systems and expanding their tax base. This can be done by introducing more progressive tax systems, increasing the number of taxpayers, and introducing measures to reduce tax evasion and avoidance. Additionally, governments should focus on improving the efficiency of their tax collection systems by introducing technology-based solutions and simplifying the tax filing process. Finally, governments should ensure that the revenue collected is used to fund public services and infrastructure that benefit the entire population.