While taxes on international trade account for around 1 per cent of government revenues in developed countries, the share is close to 30 per cent in the least developed countries.

Bigger percentages are not unusual, especially in small countries that are the most reliant on tariffs. “For example, tariffs make up 62 per cent of tax revenue in the Bahamas, 54 per cent in the Solomon Islands, and 75 per cent in Guinea,” informs an essay by Joseph E. Stiglitz and Andrew Charlton, included in the recently published book.

“Governments can, of course, attempt to replace lost tariff revenue with other sources of income, but these may be limited and have high associated costs. Thus, either public expenditure is reduced or other taxes are increased: either may have significant adverse effects on growth.”

A read for the trade-avid.

What are laws? “Spider webs through which the big flies pass and the little ones get caught,” says Solon (638-659 BC).

Opening with this insightful quote is Priti Suri & Associates’ FDI Notifications – an Anthology ( www.lexisnexis.co.in). FDI or foreign direct investment is a happening area. At the time of writing, for example, there is a news report about the Union Cabinet deferring a decision on raising the cap on FDI in the civil aviation sector.

The Anthology from the Delhi-based law firm brings together pronouncements on a fast-changing subject. It starts with a discussion of industrial policy between 1991 and 2006.

“Since 1991, the process of FDI in India has faced social, economic and political constraints,” observes an essay. “Though there were areas like consumer goods, durables and automobiles, where FDI flowed in substantial quantities, most sectors were still struggling to attract the level of investment they required for a steady growth. Identifying the need for liberalising FDI, the government policies progressively eased over the years.”

For the professionals’ shelf.

Shakespeare speaks of ‘costly treaty’ (King Henry VIII), ‘pleasing treaty’ (Coriolanus), and friendly treaty (King John), apart from many an ‘entreaty’. When tax experts talk of treaties, however, what they have in mind are the double-taxation avoidance agreements (DTAAs) between countries, as would be evident from these snatches among the latest news: The India-Kuwait DTAA comes into effect on April 1, 2008 (Arab Times, Kuwait); and DTAA between India and Mauritius is under threat once again (AllAfrica.com). Plus, there is the tax ‘bouncer’ from Down Under inviting a re-look at the Indo-Australia DTAA.