Government is unlikely to overhaul Poland’s tax regime

2021 ◽  
Keyword(s):  
Value Added ◽  
Disposable Income ◽  
Policy Preference ◽  
Corporate Taxes ◽  
Value Added Tax ◽  
Alternative Source ◽  
Content Type ◽  
Goods And Services ◽  
Indirect Taxes ◽  
The Government

Significance This continues the policy preference -- out of line with Poland’s peers -- for indirect taxes on goods and services, including a relatively high value-added tax (VAT) rate. The government says the sugar tax aims to curb rising obesity, but critics suspect it is a new way of raising revenue. Impacts Corporate taxes could be raised as an alternative source of revenue. Left unaddressed, the regressive trend in taxes and rising inequality may create an opening for the leftist Spring and Together parties. If UK taxes rise post-pandemic, the relative fall in disposable income could encourage Polish immigrants to return to Poland.

scholarly journals An Insight Into the Value Added Tax System Detailing Its Origins, Impact, Provisions and Regulations With Reference to India

2004 ◽  
Vol 3 (1) ◽  
pp. 19-29
Author(s):  
Tomy Kallarackal
Keyword(s):  
European Economic Community ◽  
Value Added ◽  
Tax Credit ◽  
Value Added Tax ◽  
Excise Duty ◽  
Goods And Services ◽  
The World ◽  
The Difference ◽  
The Government ◽  
Insight Into

The Value Added Tax was first introduced in France in 1954. It was the resultant effort of France and members of the European Economic Community (E.E.C) during the 1950s aimed at the simplification of commodity taxes. Currently more than 130 nations in the world have adopted the VAT system. In the last decade alone over 50 nations have introduced VAT. This includes implementation in China and most recently the addition of Australia to the list of VAT nations. The world over, VAT is payable on both goods and services as they constitute a part of the national GDR Excise duty and sales taxes are merged into the singularity of VAT. No tax is levied on exports with full input tax credit made available. The scheme of taxation adopted by most nations is very simple. The seller of goods and the service provider charge tax on sales, avail input tax credit and pay the difference as VAT to the goVernment treasury. The compliance system in VAT nations is also very simple. There is very less interface between the tax collector and the tax payer. However there are provisions for heavy penalization of VAT defaulters. VAT is administered nationally and is also levied on imports.  

Effects of zero rating value added tax on government revenue in Namibia

2015 ◽  
Vol 6 (4) ◽  
pp. 343-355 ◽  
Author(s):  
Ojijo Odhiambo ◽  
John E. Odada
Keyword(s):  
Aggregate Demand ◽  
National Income ◽  
Value Added ◽  
Disposable Income ◽  
Government Revenue ◽  
Content Type ◽  
Goods And Services ◽  
Marginal Propensity To Consume ◽  
Long Run ◽  
Marginal Propensity

Purpose – The Government of Namibia has traditionally used fiscal (especially tax) policy as an instrument for annual budget formulation. Marginal tax rates for profits and various income brackets have been changed back and forth in response to changes in economic conditions. However, to date, no attempt has been made to evaluate the effectiveness of these reforms in achieving the broad national economic goals, in general, and the potential effects on government revenue in the short, medium and long-run periods, in particular. The purpose of this paper is to fill this information gap by analysing the implication of the 2008 zero-rating of value added tax (VAT) on basic commodities for aggregate demand and government revenue. Design/methodology/approach – The study uses an analytical framework based on economic theory which posits that in an open economy, which trades with the rest of the world, aggregate demand for goods and services is made up of consumption demand, investment demand, government demand and net exports and that real sector equilibrium is attained when aggregate supply of goods and services is equal to aggregate demand for goods and services. Findings – Using the Namibia Household Income and Expenditure Survey results, the annual loss in government revenue attributable to this policy is, ceteris paribus, estimated to be N$310.4 million. With a marginal propensity to consume out of disposable income of 0.89, total expenditure by households on goods and services is likely to increase by N$276.3 million per annum. In the medium-to-long-run, national income will have increased by N$303.9 million per annum. Taxes which are responsive to changes in the level of national income will have increased by N$85.7 million, compensating for just over one quarter of the estimated loss in government revenue of N$310.4 million. Research limitations/implications – The study has used a partial equilibrium model as opposed to computable general equilibrium model, which provides a consistent framework that meets most of the sectoral and institutional data requirements for the simple reason that a social accounting matrix which can be used readily to connect data from different sources, such as national accounts and household surveys and would thus have been ideal model for analysing the impacts of the VAT tax reform has not been developed for Namibia. Practical implications – The paper provides a number of practical policy options available for government including, but not limited to, increasing direct taxes, VAT rate on specific (luxury) goods and services and statutory VAT rate on all other commodities not zero-rated, other taxes such as taxes; and borrowing from external sources. Social implications – It is established that zero-rating VAT on all the basic commodities in 2008 reduces the VAT paid by all Namibian households by N$310.4 million per year, which represents the annual increase in the disposable income of all households. And with a marginal propensity to consume out of disposable income of 0.89, total expenditure by households on goods and services will increase by N$276.3 million per year. Originality/value – This paper presents the first attempt at evaluating the effectiveness of tax (VAT) policy reforms in Namibia in achieving the broad national economic goals, in general, and the potential effects on government revenue in the short, medium and long-run periods, in particular.

Costa Rica protests to hinder Alvarado’s reforms

2019 ◽  
Keyword(s):  
Costa Rica ◽  
Value Added ◽  
Social Spending ◽  
Fiscal Deficit ◽  
Value Added Tax ◽  
Content Type ◽  
Form Part ◽  
Evangelical Movement ◽  
The Government

Significance The demonstrations form part of a broader backlash against the government’s newly introduced value-added tax (VAT) and indicate the depth of popular feeling building against President Carlos Alvarado. Impacts The risk of watering down the new VAT regime will raise concerns among investors about the government’s commitment to fiscal rigour. Delaying VAT implementation would also force the government to cut social spending in order to hit its fiscal deficit goals. The evangelical movement will demonstrate its strength in further protests throughout Alvarado’s term.

scholarly journals Impact of Value Added Tax to Enugu’s Economy

2021 ◽  
Vol 8 (11) ◽  
pp. 278-287
Author(s):  
MARIA LUISA GONZALES ◽  
FRIDAY ODE
Keyword(s):  
Value Added ◽  
The Philippines ◽  
Tax Revenue ◽  
Business Organizations ◽  
Value Added Tax ◽  
Goods And Services ◽  
Descriptive Research ◽  
Significant Relationships ◽  
The Government ◽  
The Impact

ABSTRACT           Value-added tax is everywhere; it is in the most of goods and services we purchase. Take for instance; when we go to the salon to get our hair done, when we gas up our car, vat is also included in what we pay.  In the Philippines, the value-added tax is a form of sales tax. It is a tax on the consumption levied on the sale, barter exchange, or lease of goods, properties, and services in the Philippines, and on importation of goods into the country, it is an indirect tax that may be shifted or passed into the buyer transferring lease of goods, properties or services. While in Nigeria, VAT is a Federal Government Tax that is administered using the existing machinery of the Federal Inland Revenue Services (FIRS). This study assessed the impact of value-added tax on Enugu Nigeria’s Economy, specifically to Government, Business Organizations, and Consumers, the problems identified, significant relationships, and the solutions recommended. The findings revealed that VAT has a significant impact on business organizations and consumers but positively on the part of the government. Recommendation for the improvement is for the consumer with low average earnings should be exempted in paying the VAT provided however, criteria must be set to exempt them in VAT. Keyword: Social Sciences, Impact, Value added Tax, Revenue, descriptive research design, Philippines

scholarly journals MEMAJAKI TRANSAKSI EKONOMI DIGITAL: STUDI KASUS DI INDIA, PERANCIS, DAN AUSTRALIA

2020 ◽  
Vol 2 (1) ◽  
pp. 1-12
Author(s):  
Suwardi . Suwardi ◽  
Alan Budiandri ◽  
Cinthya S. ◽  
Ghifri N. A.
Keyword(s):  
Literature Review ◽  
Income Tax ◽  
Value Added ◽  
Regulatory Framework ◽  
Value Added Tax ◽  
Goods And Services ◽  
Physical Presence ◽  
Foreign Supplier ◽  
The Government

The digital tax is imposed on the transaction of goods and services carried out with Domestic Taxpayers or with Foreign Taxpayers without a physical presence in Indonesia. To date, the existing regulatory framework makes it impossible for Indonesia to tax those transactions. Digital taxation concepts that can be applied by Indonesia include the Income Tax and Value Added Tax. Digital tax can also be done by using a new concept specifically regulating digital tax. Indonesia introduced VAT for the foreign supplier in the mid-2020. Data were obtained through a literature review of countries that had applied taxes on digital economic transactions before Indonesia. This paper is expected to provide input for the Government of Indonesia in taxing digital transactions.Pajak digital merupakan pajak yang dikenakan atas transaksi pertukaran barang dan/atau jasa yang dilakukan oleh sesama Subjek Pajak Dalam Negeri maupun dengan Subjek Pajak Luar Negeri yang keberadaan fisiknya tidak ada di Indonesia. Alternatif pemajakan digital yang dapat diterapkan oleh Indonesia diantaranya menggunakan konsep Pajak Penghasilan (PPh), Pajak Pertambahan Nilai (PPN) atau dapat pula dilakukan dengan menambahkan jenis pajak baru khusus mengatur pajak digital. Indonesia baru mengenakan pajak untuk jenis PPN atas transaksi digital pada pertengahan tahun 2020. Data diperoleh melalui tinjauan literatur atas negara-negara yang telah menerapkan pajak atas transaksi ekonomi digital sebelum Indonesia. Tulisan ini diharapkan dapat memberikan masukan bagi Pemerintah Indonesia dalam memajaki transaksi digital.

What shapes Muslim business operators’ attitudes towards value-added tax? Evidence from the United Arab Emirates

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohd Ariff Kasim ◽  
Siti Rosmaini Mohd Hanafi ◽  
Norazah Mohd Suki
Keyword(s):  
United Arab Emirates ◽  
Structural Equation ◽  
Value Added ◽  
Value Added Tax ◽  
Theoretical Understanding ◽  
Content Type ◽  
Policies And Procedures ◽  
Implementation Period ◽  
Managerial Implications ◽  
The Government

Purpose This study aims to examine what factors shape Muslim business operators’ attitudes towards pre- and post-value-added tax (VAT) implementation in the United Arab Emirates (UAE). Design/methodology/approach A longitudinal approach is employed to collect data from a total of 200 respondents, during both the pre-VAT implementation period and the post-VAT implementation period. A partial least squares structural equation modelling approach was performed to analyse the research. Findings Empirical findings revealed that challenges in implementing the VAT system were the primary predictors of Muslim business operators’ attitudes regarding the pre-VAT implementation period in the UAE because they were aware that the penalties associated with non-compliance would outweigh the costs incurred in preparing for the VAT. During the post-VAT implementation period, awareness was the strongest influence on Muslim business operators’ attitude because there are no income taxes imposed on businesses and individuals in the UAE. Practical implications The introduction of VAT in the UAE ignited great controversy on the part of Muslim business operators, who viewed the new tax system as a significant challenge or risk to their careers, especially when they realised that they would have to play a significant role in tax collection. VAT registration should be required for all businesses regardless of size since they are going to be the tax agents for the government. Indeed, the government should finalize policies and procedures on the penalties for non-compliance since such legalities could greatly contribute towards the acceptance of VAT. Originality/value Challenges prompted Muslim business operators to become more knowledgeable about VAT, whereas also developing a greater awareness and sense of preparedness regarding the implications of the system on their businesses. This discovery has advanced the theoretical understanding of the topic and its managerial implications.

VAT on foreign digital services in Mauritius; a comparative study with South Africa

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ambareen Beebeejaun
Keyword(s):  
South Africa ◽  
Action Plan ◽  
Value Added ◽  
Research Paper ◽  
Content Type ◽  
Goods And Services ◽  
Legal Provisions ◽  
Digital Services ◽  
Compliance Requirements ◽  
The Government

Purpose Value added tax (VAT) is an indirect tax that is payable upon the consumption of goods and services. Recently, the Government of Mauritius has introduced a new set of rules to extend the VAT system to non-resident providers of electronic services to consumers based in Mauritius. The purpose of this research paper is therefore to assess the adequacy and efficiency of the recent VAT amendments in terms of compliance requirements and collection measures and to identify loopholes in the present legal provisions. Design/methodology/approach The methodologies for the research are in essence comprised of the black letter approach which will analyse the legal provisions relating to VAT in Mauritius. A comparative analysis will also be conducted to find out the corresponding legal provisions relating to VAT on digital services in South Africa. Findings This research paper has highlighted some recommendations inspired by the laws of South Africa and the Organisation for Economic Cooperation and Development Based Erosion Profiting Shifting action plan which may be of use to Mauritius stakeholders when devising regulations on the imposition of VAT on foreign suppliers of digital services under Section 14B of the VAT Act. Originality/value To the author's best knowledge, this research paper is the first study conducted in the field of indirect taxation of foreign suppliers of digital services to residents of Mauritius.

Egypt is on track for IMF loan

2016 ◽  
Keyword(s):  
Saudi Arabia ◽  
Job Creation ◽  
Value Added ◽  
Value Added Tax ◽  
Content Type ◽  
A Value ◽  
Potential Benefits ◽  
Board Decision ◽  
The Government ◽  
The Way

Significance Cairo passed a value-added tax (VAT) law, a key prerequisite for the Fund, while China and Saudi Arabia have indicated that they will provide much of the required 5 billion-6 billion dollars in co-financing, paving the way for the board decision. Impacts The benefits of the reforms to be undertaken as part of the IMF programme will take time to become apparent. The main potential benefits are higher growth, lower fiscal and external deficits, more investment and increased job creation. There is a risk of inflation rising even higher, growth remaining sluggish and unemployment and poverty increasing. The negative aspects of the reforms could stoke further resentment at both the government and Sisi.

scholarly journals The Consequences of Indirect Taxation on Consumption in Nigeria

2020 ◽  
Vol 6 (4) ◽  
pp. 105
Author(s):  
Cordelia Onyinyechi Omodero
Keyword(s):  
Value Added ◽  
Rank Test ◽  
Economic Activities ◽  
Indirect Taxation ◽  
Goods And Services ◽  
Food Items ◽  
Indirect Taxes ◽  
Causality Tests ◽  
The Government ◽  
Excise Duties

This research tests the consequences of Nigeria’s indirect taxes on consumption. There are two reasons why the government imposes taxes on goods and services in Nigeria. The primary purpose is to produce income for the smooth running of the administration. Another silent reason is to discourage the ingestion of prohibited products and services, and that is through customs and excise duties (CED). This study assesses both Value Added Tax (VAT) and CED to determine their effects on consumption using various econometric tools, such as trend analysis, pairwise Granger causality tests, unrestricted co-integration rank test, least squares technique, and data that cover the period from 2005 to 2019. The results indicate that VAT insignificantly but positively influences consumption, while CED has a considerable auspicious influence on use. This result shows that VAT imposition on merchandises and services is discouraging the absorption of specific foodstuffs and services and allowing the operation of informal economic activities to thrive in Nigeria. However, CED charges do not reduce the use of certain illegal products purposely taxed to discourage their consumption. This study recommends a reduction in the prices of food items and services to enable consumers to increase their patronage, while the products that attract CED but are harmful should be banned entirely. Thus, offenders should be allowed to face the wrath of the law.

scholarly journals Does the Discourse on the Increase of Value Added Tax Have any legitimacy? Utilitarian Point of View

2021 ◽  
Vol 5 (3) ◽  
pp. 340
Author(s):  
M. Aufar Saputra Pratama Erawan ◽  
Zaid Zaid ◽  
Muhammad Oky Fauzi
Keyword(s):  
Value Added ◽  
Secondary Data ◽  
Point Of View ◽  
Primary Sources ◽  
Value Added Tax ◽  
Conceptual Approach ◽  
Analytical Technique ◽  
Goods And Services ◽  
Analysis Technique ◽  
The Government

Recently, Indonesia has introduced and planned a tax imposition program, which was announced through the planned imposition of Value Added Tax (PPN) on Nine Basic Ingredients (sembako). Not only that, it turns out that the Government of Indonesia will also impose taxes on other services, such as; Education and Orphanages and Orphanages. As a result, there is a potential for rebellion resulting from some of these plans. This study aims to examine and examine the fifth KUP Bill, which increases tariffs and the imposition of VAT on goods and services that should be excluded. This type of research is normative legal research. This study uses a law application approach and a conceptual approach. The primary sources used are secondary data sources (library materials). The analytical technique used is a descriptive, prescriptive analysis technique, which is specifically given to provide arguments for the results of research that has been carried out. This study found that the VAT rate will reach 12% with a minimum of 5% and a maximum of 15%. Moreover, in general, this policy can violate the principle of utilitarianism because it will harm social welfare. However, if VAT is only imposed on certain goods and services that are more exclusive to subsidize goods and services consumed by the poor, it will gain legitimacy in utilitarianism.

Sign in / Sign up

Export Citation Format

Share Document