Abstract
Conventional views about the fairness and economic consequences of selective taxes on goods and services (excises) in relation to sales and income taxes need to be re-examined. Excises can often be remarkably well tailored to the peculiar conditions and objectives of developing countries. Experience shows that excises can be administered effectively. If properly designed, therefore, excise systems may prove more capable of imparting progressivity and inducing efficiency than unsuccessful attempts at seemingly more sophisticated forms of tax technology. Excises can contribute substantially to certainty in taxation, a factor of which the social and economic importance can scarcely be overemphasized.