Extensive negotiations are expected on the number of tariff bands, the criteria for setting such tariff bands and the modalities for reducing tariffs in each band.

III. TARIFF ESCALATION

III. Tariff escalation 9

(a) Substantial reductions of tariffs, the rolling back of tariff peaks and the removal of tariff escalation

This time, seven grades of tax rates of job salaries are the same as before without any changes, but the gaps between grades of tax rates are obviously changed. The gaps between three grades of low tax rates in 3 , 10 and 20 are obviously widened, the gap of the grade of tax rate in 25 is slightly narrowed, but the gaps between three grades of high tax rates in 30 , 35 and 45 are the same as before.

Tariff escalation will also decline.

The tax is progressive and the graduation is effected by a tax free exemption limit on wealth.

It was noted that numerous tariff and non tariff barriers remained, as well as tariff peaks and escalation, which affected developing countries exports.

28. A tax which has tended to reduce both income and wealth has been the gifts tax, which is on a graduated scale and integrated with estate duty.

The second benefit the gaps between grades of low tax rates will be obviously widened.

Tariff escalation occurs if tariffs rise with stages of further processing.

Previous positions include principal economist (tax policy), Ministry of Finance and National Planning and senior revenue analyst, Ministry of Finance and National Planning.

This differentiation was again the result of the application of a tax system that provided different tax brackets based on marital status.

The G 20 proposed the setting of five tariff bands for developed countries and four tariff bands for developing countries, with the capping of 100 per cent for developed countries and 150 per cent for developing countries.

In the comparator's case, different tax brackets applied based upon the marital status and the taxpayer was allowed a personal exemption for each member of his her family.

There is also a strong tendency of tariff escalation for processed products.

According to the notification, the specific tax exemption management measures would be formulated by the provincial tax departments and commercial departments.

The decisions relating to the improvements in market access for non agricultural products adopted at the Doha Ministerial Conference, inter alia, state that the negotiations in this area shall aim to reduce and, as appropriate, to eliminate tariffs, including through the reduction or elimination of tariff peaks, high tariffs, tariff escalation, and non tariff barriers, in particular those relating to products of export interest to developing countries.

The study analyses the tariff situation for developing country exports and focuses on two major aspects (a) tariff peaks and (b) tariff escalation.

Today, a reporter learned from the State Administration of Taxation (SAT) that as of the end of June this year, the tax authorities at all levels have announced a total of 2,470 illegal blacklist cases.

Reductions of tariff peaks and tariff escalation facing these countries exports would be important in this regard.

Regarding tariff barriers, a number of products of export interest to developing countries remain subject to peak rates and tariff escalation in various markets (see box on peak tariffs).

Reduction in each band would be based on linear cuts, with developing countries subject to lower cuts (two thirds of the developed country cuts), with the element of progressivity across the bands with higher tariffs subject to deeper cuts.

(a) Substantial reductions in all tariffs, the rolling back of tariff peaks and the removal of tariff escalation, which still affect a notable range of products and sectors

NAMA It was recognized that all countries have a positive interest in seeking the reduction of tariff peaks and tariff escalation, as well as non tariff barriers.

This increase, combined with the effect of tax changes (the comparator adjusted its tax brackets), resulted in a net increase of 2.48 per cent at the P 4, step VI level.

This, however, was greatly undermined by commodity price volatility, tariff peaks and tariff escalations.

In this regard it is urgent to eliminate high tariffs, tariff picks, tariff escalation, non tariff barriers, export subsidies and to substantially reduce trade distorting domestic support for protecting the agricultural sector of developed countries.

Nevertheless, scope remains for the liberalization and rationalization of tariffs in non agricultural goods, particularly for the removal of tariff bias, tariff escalation and tariff peaks affecting developing country exports in their major markets.

An issue of particular importance from the standpoint of developing countries is the elimination of tariff escalation, which discourages the process of adding value through industrialization.

Some aspects of market access, peaks and escalation of tariffs, and subsidies could be addressed by WTO.

Notwithstanding the efforts made in reducing quot tariff escalation quot and quot tariff peaks quot , these problems still remained.

It is clear that the tax exemptions provided for in the headquarters agreements undoubtedly applied to all three of those levels.

The agricultural sector is protected through high tariffs, tariff picks, tariff escalation and non tariff barriers in many developed countries, and market access is often denied to products from developing countries, including landlocked developing countries.

Previous positions include Senior adviser at Sycip Gorres Velayo and Company tax partner and head of Tax Division at Sycip Gorres Velayo and Company Professor of Taxation, University of the Philippines College of Law and Professor of Taxation, Ateneo de Manila College of Law.

Several emphasized the actual shortcomings of the agreements the lack of tariff cuts for 22 per cent of the sensitive imports for the developing countries, and the continued existence of tariff peaks, if not tariff escalation.

As much as 97 per cent of African, Caribbean and Pacific countries' exports to the European Union enter duty free, and tariff escalation is virtually non existent.

In an attempt to capture these considerations, tariff escalation is frequently measured in terms of Effective Rates of Protection (ERP).

In outlining the negative effects of tariff escalation in section I.A of the report, more attention might have been given to the consideration of the links between MFN and preferential regimes, since the existence of preferential margins in relation to tariff levels mitigated the effects of tariff escalation.

Calculating formula of import duties is import duties customs value x import tariff rate

Tax. Full tax. English tax.

Formulas for tariff cutting under NAMA should be determined expeditiously so as to drastically reduce tariff peaks and tariff escalations, with adequate SDT made available to developing countries.

However, as described in some detail for food products in UNCTAD 1997b, the impact of tariffs levied in importing markets on the trade performance of developing country exporters is inconclusive. escalation remains for many products such as processed food items, limiting vertical diversification into this area, and several tariffs have been bound at prohibitively high levels, much above the applied tariffs.

In the case of manufacturers, tariff peak and tariff escalation were a source of concern, as they discourage developing countries from developing higher value added activities.

The FAO study concludes that tariffs and tariff escalation may present an important problem for diversifying exports of developing countries.