Reforming the tax administration by improving information management and cross-checking statements and declarations leads to greater efficiency in tax collection.1 Setting up a special unit for high-income taxpayers has also been found to be helpful. Reducing or eliminating exemptions and loopholes, as well as enticing more businesses to join the formal sector, can go a long way towards broadening the tax base. It may be useful to combine the carrots of some incentives for tax payment with sticks of better enforcement. In all cases, however, revenues will rise only if the Government has the political will, makes its intentions clear and is consistent and determined about tax administration. The principle should generally be to rely as far as possible on rules-based and non-discretionary tax instruments that are corruption-resistant and have lower transaction costs.