New Colombian fiscal reform will pass but is flawed

2021 ◽  
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Personal Income ◽  
Social Benefits ◽  
Personal Income Tax ◽  
Low Income Students ◽  
Tax Base ◽  
Content Type ◽  
The Government ◽  
Game Changer

Significance The plan avoids new taxes on individuals, instead increasing the fiscal burden on firms. The proposed measures aim to generate COP15.2tn (USD3.9bn) in new revenue, which would be used to expand subsidies to households and firms, encourage youth employment, and guarantee tuition-free university for low-income students. Impacts The proposals will increase annual revenue by at least 1% of GDP, boosting Colombia’s historically low tax collection. The extension of social benefits may provide a modest political dividend for the government, but will not be an electoral game-changer. Future reforms will be necessary to address the structural deficit, expand the personal income tax base and improve progressivity.

scholarly journals Evaluation the impact of the personal income tax reform in the Czech Republic in 2021 on effective tax rate and tax progressivity

2021 ◽  
Vol 7 (2) ◽  
pp. 134-145
Author(s):  
M. Krajňák ◽  
Keyword(s):  
Income Tax ◽  
Tax Reform ◽  
Personal Income ◽  
Personal Income Tax ◽  
Effective Tax Rate ◽  
Tax Base ◽  
Tax Rate ◽  
Tax Progressivity ◽  
The Impact ◽  
Income Tax Reform

Legislation governing personal income taxation is often subject to changes. A significant personal income tax reform was carried out in the Czech Republic in 2021. The reform implements a progressive tax rate, changes the way the tax base is determined, and increases the tax relief for the taxpayer. The aim of the article is to evaluate the impact of the personal income tax reform on the effective tax rate and tax progressivity. To that end, methods of regression analysis have been used. The source of information for analysis was the data published by the Czech Statistical Office. It was found that in 2021, in comparison with 2020, the tax burden represented in this study by the effective tax rate, in all cases became lower, approximately by 5%. The main reason for this decline is the adjustment of the method of construction of the tax base, which, for the first time in the history of the Income Tax Act, is gross wages. Until the end of 2020, the tax base was a super-gross wage, or the gross wage increased by social security contribution borne by the employer at his costs. The second factor that reduces the tax burden is a CZK 3,000 increase in the deduction per taxpayer per year. This fact increases the degree of tax progressivity, as confirmed by the results of the progressivity analysis and the regression analysis. The changes that have taken place in the personal income tax this year have a positive impact on the taxpayer, but from the point of view of the state, this reform has reduced the state budget revenues.

scholarly journals The Imperative Of Basic Tax Education For Citizens

2010 ◽  
Vol 3 (9) ◽  
pp. 61-66
Author(s):  
Gladson Nwanna ◽  
Darlington Richards
Keyword(s):  
Income Tax ◽  
Personal Income ◽  
Basic Knowledge ◽  
Personal Income Tax ◽  
Unique Effect ◽  
Starting Point ◽  
Basic Understanding ◽  
Tax Education ◽  
Good Starting Point ◽  
The Government

The role and impact of taxes in the lives of Americans makes basic tax education an imperative for all Americans. Not only will that knowledge be valuable to the taxpayer, it will also be valuable to the Government that imposes a variety of taxes. Specifically, it is our position that the lack of basic understanding of taxes is unwarranted, long overdue and importantly could be costing the taxpayers hundreds of millions of dollars. In this paper, we focus on the personal income tax because it is one of the most recognizable of the taxes and because it does account for a significant amount paid by Americans. While we wholeheartedly agree that basic knowledge of all other types of taxes will equally be valuable, the income tax, we believe, is a good starting point in light of its unique effect on the majority of Americans. 

scholarly journals Exemption of Fiscal Exit Tax: Its Impact on International Flights and Tax Revenue

2015 ◽  
Vol 16 (1) ◽  
pp. 22
Author(s):  
Joko Mariyono
Keyword(s):  
Income Tax ◽  
Time Series Data ◽  
Personal Income ◽  
Series Data ◽  
Government Revenue ◽  
Personal Income Tax ◽  
Econometric Methods ◽  
Asean Member ◽  
The Government ◽  
The Impact

Fiscal tariff is considered as personal income tax, collected in advance when adult people who have been staying in Indonesia for more than 183 days go overseas. The magnitude of tariff was sometime much greater than the airfare itself, particularly for international flight to ASEAN member countries. This study aims to measure the impact of elimination of fiscal tariff applied to international flight passenger departing from Indonesia. Potential loss in government revenue from income tax and number of international passengers were analyzed. This study used descriptive and econometric methods. Annual and monthly time series data were collected for publication of the Indonesian Statistical Agency and Central Bank of Indonesia during the periods 2008-2012. The results show that the elimination of fiscal tariff did not affect the government revenue resulting from personal income tax. The impact of tariff elimination was to increase the rate in number of passengers going overseas.

scholarly journals Penyesuaian Lapisan dan Tarif PPh Orang Pribadi: Agresif atau Progresif?

Owner ◽  
2022 ◽  
Vol 6 (1) ◽  
pp. 709-721
Author(s):  
Kalyana Mitta Kristanti
Keyword(s):  
Income Tax ◽  
Positive Impact ◽  
Personal Income ◽  
Tax Rates ◽  
Personal Income Tax ◽  
Middle Income ◽  
Tax Rate ◽  
Tax Harmonization ◽  
The Difference ◽  
The Government

In 2022, Indonesia would apply changes in tax brackets and rates for personal income tax. This adjustment is based on the Article 17 Paragraph 1 Tax Harmonization Law Number 7 of 2021. The government tries to accommodate the needs of the community through formulating process of this regulation. In particular, it provides convenience to the lower-middle income community and encourages an even distribution of income. People belonging to the high wealth income will be subject to the highest tariffs that have just been set through this law. Through a qualitative descriptive method in which data collection is carried out by taking from literature review; law, articles, books, and website, the author tries to analyze changes in brackets and rates of personal income tax. This study presents illustrations of the calculation to explain the difference in the amount of income tax payable before and after the implementation of the Tax Harmonization Law. In addition, the analysis of the principles of equity and democracy on the adjustment of layers and tax rates is elaborated in this paper. The results obtained explain that with the application of the new tax rate, taxpayers get a tax burden relief because the tax expense is lower due to the broadening of income range. However, wealthy taxpayers will pay more taxes because of the higher tax rates. This condition proves that the new tax rate supports vertical fairness in the taxation system. In addition, the implementation of regulations related to tax rates adjustment provides evidence that the implementation of democracy has been implemented. The adjustment of tax brackets and rates has a positive impact on the community and the government so that the allocation of tax revenues can run optimally to support the welfare of the community.

scholarly journals ANALISIS PENERAPAN PP 46 TAHUN 2013 ATAS PAJAK PENGHASILAN WAJIB PAJAK ORANG PRIBADI USAHAWAN DIBIDANG USAHA JASA PADA TOKO TONNY

2018 ◽  
Vol 14 (1) ◽  
Author(s):  
Dayna M. Poluan ◽  
Jullie J. Sondakh ◽  
Heince R. N. Wokas
Keyword(s):  
Income Tax ◽  
Descriptive Analysis ◽  
Personal Income ◽  
Calculation Scheme ◽  
Net Income ◽  
Personal Income Tax ◽  
Analysis Methods ◽  
Tax Laws ◽  
The Government ◽  
Tax Regulation

In 2013 the Government implemented the Income Tax Regulation, namely PP No. 46 of 2013 with a calculation scheme of 1% multiplied by turnover or gross profit and gross circulation of less than 4.8 billion per year. This study aims to determine the application of PP No. 46 of 2013 at Tonny Stores in accordance with the existing tax laws. This study uses descriptive analysis methods and data obtained through interviews and documentation. This study will also compare PP 46 of 2013 with the Calculation of Net Income Norms and the latest tax rules PP 23 of 2018. The results of this study indicate PP 46 of 2013 reduces the amount of tax paid compared to Net Income Calculation Norms and also makes it easy to calculate the amount Personal Income Tax is payable so that it can minimize errors in determining the amount of income tax that must be paid by the company.Keywords: Income tax, Norma Calculations, PP 46 in 2013

scholarly journals Budget Tax Revenues and Losses from External Labor Migration in Russia

2019 ◽  
Vol 5 (3) ◽  
pp. 190-203
Author(s):  
M. O. Kakaulina ◽  
Keyword(s):  
Labor Migration ◽  
Income Tax ◽  
Negative Impact ◽  
Personal Income ◽  
Personal Income Tax ◽  
Excise Tax ◽  
Tax Revenues ◽  
International Labor ◽  
International Labor Migration ◽  
The Government

One of the reasons behind declining budget revenues can be external migration. This article aims to describe the methodology for estimation of tax losses and revenues from international labor migration for specific types of taxes. Changes in personal income tax revenues are estimated by using the data on the number of labor emigrants (immigrants) for specific occupations, nominal gross monthly wage of employees in this occupation in Russia, standard child tax deductions and the corresponding personal income tax rate for residents (non-residents). Changes in VAT and excise tax revenues caused by the current trends in labor migration are estimated in accordance with the structure of household consumption. The amount of tax revenues (and losses) is calculated as the product of the sum of VAT and excise tax payments made by one member of a household per year when buying goods, works and services on the territory of Russia, and the number of emigrants (or immigrants). The research uses the data provided by Rosstat, Federal Tax Service of Russia and the Analytical Centre under the Government of the Russian Federation for 2012–2017. The conclusion is made that international migration has a negative impact on the tax revenues of the country’s consolidated state budget. Although, throughout the whole of the given period, the balance of additional revenues from VAT, excise taxes and the personal income tax (PIT) on earned income and budget losses from these taxes remained positive, in absolute terms, this balance decreased significantly. Trends in international labor migration affected the balance of tax losses and revenues. Therefore, the government’s attempts to target international labor migration by reforming the tax legislation seem quite reasonable: the upcoming tax reforms will include the introduction of the concept ‘centre of vital interests’ as the second criterion of residence and equalization of the PIT rate for tax residents and non-residents. The proposed methodology can thus prove to be an effective tool for the Federal Tax Service of Russia to estimate the resulting changes in tax revenues as well as other changes related to labor migration processes.

scholarly journals Introduction of the personal tax-free allowance in Russia and its budget implications

2021 ◽  
Vol 7 (1) ◽  
pp. 20-38
Author(s):  
V. V. Gromov ◽  
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Minimum Cost ◽  
Personal Income ◽  
Personal Income Tax ◽  
Cost Of Living ◽  
Tax Rate ◽  
Tax Revenues ◽  
Regional Product ◽  
Personal Tax

The social problem of poverty can be mitigated by introduction of a personal tax-free allowance. In this paper the likely effects that a personal tax-free allowance will have on the Russian budget is investigated. It has been assumed that a tax-free allowance will hit regional budgets because they depend greatly on income tax revenue. The indicated effects were estimated by applying a personal tax-free allowance to the data on economic conditions in 2019. Rosstat data on population, poverty, wages and gross regional product and Federal Tax Service data on the number of taxpayers and personal income tax revenues were used. For the purpose of the paper, two scenarios were calculated. In the first scenario, a zero personal income tax rate is applied to wages below the minimum cost of living. We found that under this scenario the consolidated budget of Russia loses over 1 trillion rubles while regional tax revenues reduce by more than 10%. In the second scenario, citizens whose income is below the minimum cost of living are exempt from personal income tax. We found that under this scenario regional tax revenues would be reduced by 1-5%. In both cases the introduction of the personal tax-free allowance puts greater pressure on regions that critically depend on the personal income tax receipts. It was concluded that the negative effect of an introduction of a personal tax-free allowance would be greater, the greater the prevalence of low-income taxpayers in a region. Also considerable regional disparities create a risk that such tax reform will deepen regional inequality and be disruptive for the Russian budgetary system.

scholarly journals Tax policy and housing prices: evidence from Vietnam using event study approach

2017 ◽  
Vol 14 (4) ◽  
pp. 121-132 ◽  
Author(s):  
Pham Huu Hong Thai ◽  
Hao Manh Quach
Keyword(s):  
Event Study ◽  
Policy Change ◽  
Tax Policy ◽  
Income Tax ◽  
Housing Prices ◽  
Personal Income ◽  
Personal Income Tax ◽  
Study Approach ◽  
The Government ◽  
The Impact

This paper examines the effect of tax policy on housing prices in Vietnam for the period from October 2004 to September 2016 using event study approach. The authors find that all five key changes made to the personal income tax, corporate income tax and non-farm land use tax have caused the housing prices to decline on average 6-11% during the event window, but only the impact of the personal income tax changes is statistically significant. The fact that changes in housing prices are mostly seen prior to the effective date of the tax policy change implies that tax policy change indeed has influenced the housing prices in Vietnam. Although this research has not examined the mechanism through which tax policy has influenced the housing prices, the findings offer some implications for the government in terms of using tax policy for controlling housing prices in Vietnam. The research is also of very few papers in this literature that use the event study approach.

scholarly journals The effects of personal income tax reform on employees’ taxable income in Uganda

2021 ◽  
Author(s):  
Maria Jouste ◽  
Tina Kaidu ◽  
Joseph Okello Ayo ◽  
Jukka Pirttilä ◽  
Pia Rattenhuber
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Tax Reform ◽  
Developed Countries ◽  
Personal Income ◽  
Personal Income Tax ◽  
Taxable Income ◽  
Elasticity Of Taxable Income ◽  
The Impact ◽  
Income Tax Reform

We evaluate a major personal income tax reform in Uganda that came into effect in 2012–13. The reform increased the tax-free lower threshold, increased tax rates for higher incomes, and introduced an additional highest tax band. Using the universe of pay-as-you-earn administrative data submitted by employers in the formal sector, we analyse the impact on taxable income of the introduction of the additional top tax band. Our results indicate that the elasticity of taxable income in Uganda is larger than in previous results from developed countries. Overall, the additional revenue generated from the introduction of the additional top tax band by far offset the revenues lost from the decreased revenues from employees with medium to lower taxable incomes, despite the large elasticity of taxable income at the top. We contribute to the very scarce literature on the effects of personal income tax reform on employees’ income in a low-income country in Africa.

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