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Lessons from the taxi industry to improve Romania’s governance

Ismail Radwan's picture
taxi in Romania
Photo: Daniel Kozak, World Bank


The first time I came to Bucharest in 2013 the Bank office offered to arrange a pick up from the airport. Being a seasoned traveler, I declined the offer. I reasoned that I had lived and worked in so many countries I could manage the transfer to the hotel without assistance. I was wrong.
 
I picked up my luggage to find a local cab outside the airport. A taxi driver offered me a ride. I didn’t negotiate the price upfront seeing that he had a meter in the car.
 
Twenty minutes later we reached the hotel. The meter read Lei 200 - at the that time about $60. That was over twice the going rate but there was little else I could do. I felt cheated as so many tourists do.
 
I learned from the experience, accepted offers of help from colleagues and paid more attention to rates going forward.
 
About a year later I returned to Bucharest to find a new system in place.  An electronic kiosk had been installed at the airport.  Arriving visitors could now press a button to get an estimated wait time to hail a taxi. I took my ticket. It was a smooth ride.
  
What made the difference? 
 
The new taxi ordering system is now available on mobile phones mirroring, in many ways, the service provided by Uber. Passengers can rate drivers and increase accountability.  
 
Bucharest has gone from being a difficult place to find an honest cab driver to one of the most convenient. 
 
The change has been driven by incentives and improved technology. 

 What are the implications for governance reform? 

Five Ideas to Help Close International Tax Loopholes

Rajul Awasthi's picture

TaxRebate.org.uk under Creative Commons

Base Erosion and Profit Shifting (BEPS) is a global problem which requires global solutions. BEPS refers to tax planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is little or no economic activity, resulting in significant savings in corporate taxes. BEPS is of major significance for developing countries due to their heavy reliance on corporate income tax, particularly from multinational enterprises (MNEs).
 
On October 10th 2014, nearly 60 top ministry of finance and tax administration officials from all over the world gathered in Santiago de Compostela, Spain, for a workshop on tax base erosion and profit shifting and Automatic Exchange of Information (AEOI).  The workshop was co-organized by CIAT, GIZ, OECD and the World Bank Group.