Petroleum Taxes - Trends in Fuel Taxes (and Subsidies) and the Implications
Article from: OGEL 3 (2004), in Taxation
Introduction
World Bank analysis (September 2001) shows that taxes on petroleum products are a critical source of government revenue for low-income countries. And if the experience of industrial countries serves as any guide, the rates of these taxes will have to rise sharply as low-income economies develop. But policymakers must be mindful of how taxes (or subsidies) affect the relative prices of fuels, since too large a difference in prices between products can lead to fuel switching and adulteration, adversely affecting the government tax take and pollution levels. <a ...