In this volume, a distinguished group of contributors presents a rich and comprehensive array of case studies exploring evolving tax policy and economic development in Pacific Asian countries. Opening with an overview of tax reform trends in Western nations and the lessons found there for developing countries, the book then focuses on country-specific tax reforms, including Indonesia's sustained reform experience, Japan's tax policy, the administrative dimensions of policy in the Philippines, the need for more indirect taxation in Malaysia, and the case for fiscal decentralization in Taiwan. The contributors assess the effects of taxation on investment by discussing capital costs and effective tax rates in Taiwan as well as the impact of selected tax rules on investment in Hong Kong. In addition, one chapter develops an investment function for Taiwan's manufacturing industry.
Considering the international scope of reform, the contributors discuss such key topics as the costs and benefits of Korea's tax preferences for foreign investment, the surprisingly minor effect tax factors had on Japan's export expansion in the early postwar years, and the benefits policy adjustments for international tax neutrality would have for Taiwan. The volume concludes with a look at the interplay of tax and social policies, reviewing the unique Central Provident Fund of Singapore and showing the need for distributional balance along with options for financing Korea's social development programs.