Tax Autonomy

The term "tax autonomy" captures the freedom sub-central governments (SCG) have over their own taxes.

Tax autonomy data for 2002, 2005 and 2008 is classified into 11 categories and sub-categories and ranges from full taxing power to no taxing power at all. The classification is shown below :

a.1 - The recipient SCG can set the tax rate and any tax reliefs without needing to consult a higher level government.
a.2 - The recipient SCG can set the rate and any reliefs after consulting a higher level government.
b.1 - The recipient SCG can set the tax rate, and a higher level government does not set upper or lower limits on the rate chosen.
b.2 - The recipient SCG can set the tax rate, and a higher level government does set upper and/or lower limits on the rate chosen.
c - The recipient SCG can set some tax reliefs (tax allowances and/or tax credits) but not tax rates.
d.1 - There is a tax-sharing arrangement in which the SCGs determine the revenue split.
d.2 - There is a tax-sharing arrangement in which the revenue split can be changed only with the consent of SCGs.
d.3 - There is a tax-sharing arrangement in which the revenue split can be changed unilaterally by a higher level government, but less frequently than once a year.
d.4 - There is a tax-sharing arrangement in which the revenue split is determined annually by a higher level government.
e - Other cases in which the central government sets the rate and base of the SCG tax.
f - None of the above categories a, b, c, d or e applies.

In the data for 1995, there is only one category under each of the headings a and b as follows:
a - The recipient SCG can set the tax rate and any tax reliefs.
b - The recipient SCG can set the tax rate.