The ranking of developing countries according to their fiscal effort measured in term of actual to predicted values of buoyancies is shown in Table 3.
Table 1 Buoyancies of the Taxes of Developing Countries Countries Total Taxes Direct Taxes Indirect Taxes Pakistan 1.13 1.10 1.29 Bangladesh 0.36 0.39 -0.58 Sri Lanka 0.80 1.43 1.62 Indonesia 0.51 0.58 0.90 Nepal 1.10 1.41 0.60 Singapore 0.75 0.76 0.56 India 1.05 0.64 0.86 Malaysia 0.98 1.38 1.20 Philippines 0.77 0.54 1.01 P.
Before discussing the elasticities and buoyancies of different taxes, the percentage share of each tax category in total tax revenue is presented in Table 2, which gives information about the proportion of each individual tax in the total tax bill.
We have calculated the long-run estimates of elasticities and buoyancies, (6) using the PAM and DIM, as well as the short-run estimates for various taxes.
Firstly, the low buoyancies of the income tax and export duties have adversely affected the overall buoyancy of the total tax whose other components are fairly buoyant.