Adopting a Two-Phased Approach to Tax Reform in the RMI

This policy note outlines a two-phased approach to tax reform in the Republic of the Marshall Islands (RMI). Recognizing the need for immediate tax relief for lower-income and disadvantaged groups due to recent cost of living increases, the RMI government plans to implement the first phase of reforms on October 1, 2024. The second phase will follow two years later, allowing sufficient time for legislative and technical preparation. This document builds on a <a href="https://pubs.pitiviti.org/rmi-min-wage" style="color:#C50035, font-weight:700; text-decoration:underline;">prior tax reform proposal</a>, detailing the design and economic impact of the phased approach, and explaining the interplay between the wage tax system structure and fiscal outcomes.

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Adopting a Two-Phased Approach to Tax Reform in the RMI

Posted Aug 01, 2024 | version 2

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This policy note outlines a two-phased approach to tax reform in the Republic of the Marshall Islands (RMI). Recognizing the need for immediate tax relief for lower-income and disadvantaged groups due to recent cost of living increases, the RMI government plans to implement the first phase of reforms on October 1, 2024. The second phase will follow two years later, allowing sufficient time for legislative and technical preparation. This document builds on a prior tax reform proposal, detailing the design and economic impact of the phased approach, and explaining the interplay between the wage tax system structure and fiscal outcomes.

Link to This Page:

https://pubs.pitiviti.org/rmi-tax-reform-2

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