Abstract
The primary objective of this paper is to prepare a case study on tax policy reforms and its impact, with the specific objectives of examining the main tax reforms of Ethiopia; Kenya, Uganda and Ghana. It views tax policy from a variety view points, which focuses on broad based of tax revenues and on designing certain selected major taxes, This paper will cover the theory of fiscal responsibilities under which the government uses its revenue and expenditure programs to produce desirable effects on national income, production and practice of public finance. In most of the emerging or developing countries one of the factors lacking the economic growth is lacking of revenue to finance the economic development. Highlighting tax revenue profile and composition; and discussing major problems that could prevent by implementing an effective tax polices in those countries. There is a wide gap between total investment needs and domestic resource mobilization (Sachs et al., 2004). Sachs suggested that sub-Saharan Africa (SSA) would need an additional ODA per year of about $25 billion to meet the MDGs. Key words: Fiscal adjustment, tax policies, resources mobilization, domestic and foreign debt.
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