Does tax policy fit in the portfolio of COVID-19 responses?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kerrie Sadiq ◽  
Richard Krever
Keyword(s):  
Tax Policy ◽  
Value Added ◽  
Mitigation Strategies ◽  
Income Support ◽  
Policy Reforms ◽  
Content Type ◽  
Goods And Services ◽  
Policy Responses ◽  
Tax Regimes ◽  
The Uk

Purpose Tax policymakers are currently navigating a path through a delicate dialectic of macro- and micro-level policy responses to the economic dislocation of the COVID-19 pandemic. The purpose of this paper is to examine initial tax measures that are aimed at helping taxpayers needing liquidity, solvency and income support. Design/methodology/approach This study undertakes a review of key tax policy responses of six jurisdictions across the globe that have similar tax regimes and virus mitigation strategies (albeit with different outcomes). Key initiatives implemented from February to April 2020 by Australia, Canada, New Zealand, Singapore, South Africa and the UK are examined. Findings This study indicates that tax concessions are a crude and mostly ineffective way of assisting individuals and enterprises in difficulty. In the longer term, if the crisis prompts desirable reforms such as extending the recognition of tax losses, the income tax system will emerge fairer and more efficient. Practical implications An investigation of the short-term reforms announced relating to asset write-offs, tax deferral, tax losses and goods and services tax/value-added tax rates in light of the liquidity, income support and stimulus objectives shows that in some cases the policies may have been misguided. The findings can be used by policymakers as the basis for designing better targeted alternative non-tax responses. Originality/value Jurisdictional responses to tax policy reforms during a modern period of significant economic dislocation have yet to be documented in the literature. Specifically, this paper highlights the limitations of tax policy initiatives as a response to financial hardship.

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.

23. Value Added Tax

2020 ◽  
pp. 231-234
Author(s):  
J. Scott Slorach ◽  
Jason Ellis
Keyword(s):  
Value Added ◽  
Value Added Tax ◽  
Goods And Services ◽  
One Year ◽  
The Uk ◽  
The Cost ◽  
Made In

This chapter discusses value added tax (VAT) in the UK. VAT is charged on supplies of goods and services made in the UK. Where a person makes taxable supplies in excess of a set limit in any one-year period, he must register with Her Majesty’s Revenue and Customs (HMRC). He must then account to HMRC for VAT on all taxable supplies made. The total amount payable may be reduced by the amount of VAT paid on certain taxable supplies made to him. The liability to pay VAT to HMRC rests on suppliers of goods and services. However, the cost of the tax is actually borne by suppliers’ customers who are charged VAT on the goods and services they purchase. VAT is charged in the UK under the Value Added Tax Act (VATA) 1994.

Strategic benchmarking of service pricing based on the value added

2016 ◽  
Vol 23 (4) ◽  
pp. 754-767 ◽  
Author(s):  
Carlos Renato Trento ◽  
Timóteo Stüker ◽  
Giancarlo Medeiros Pereira ◽  
Miriam Borchardt ◽  
Cláudia V. Viegas
Keyword(s):  
Value Added ◽  
Spare Parts ◽  
Pricing Policy ◽  
Content Type ◽  
Customer Expectations ◽  
Goods And Services ◽  
Case Research ◽  
Service Pricing ◽  
Research Questions ◽  
New Goods

Purpose – The purpose of this paper is to investigate opportunities to move benchmarking studies toward a strategic level. The authors benchmarked how service prices are defined based on the value added for the customer. Design/methodology/approach – A multi-case research investigated how manufacturers can increase their service revenues; how corporate reputation can be analyzed to enhance financial and market performance; how customer satisfaction and price acceptance are related; and how benchmark studies can move to a more strategic level based on a conjoint analysis of value and price. Findings – Price’s benchmarking studies must combine the customers’ value demands; the customer expectations associated to each value demand; the competitor prices; and the revenue alternatives that a supplier can explore (e.g. sale of new goods, services for new goods, services for non-new goods, and repair parts). The combination of these elements reveals several opportunities for revenue generation. This combination may also help to explain the existence of different prices for similar goods and services. The authors referred to this as a flexible pricing policy. Flexible pricing may help manufacturers maximize revenues, and win and maintain customers. Research limitations/implications – The following research questions are suggested for future studies: What other elements should be considered in strategic benchmarking studies? What other elements can influence a flexible pricing policy for goods, spare parts, and services? In what contexts can a flexible pricing policy be applied? How should flexible pricing practices be benchmarked? Practical implications – A strategic benchmarking study must first identify the customers’ value demands. It is then necessary to analyze customer expectations associated to each value demand. As shown, customers may have different expectations for the same product or service. Similar expectations must be grouped together in order to allow a well-structured benchmark. Originality/value – The authors’ findings suggest interesting points to be observed by the manufacturers who supply integrated solutions with a long life cycle.

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.

Emerging climate changes and the risks to the operation of building assets in the UK

2016 ◽  
Vol 14 (1) ◽  
pp. 21-35 ◽  
Author(s):  
Abdullah Alzahrani ◽  
Halim Boussabaine ◽  
Ali Nasser Alzaed
Keyword(s):  
Climate Change ◽  
Climate Changes ◽  
Mitigation Strategies ◽  
Future Climate Change ◽  
Climate Change Scenarios ◽  
Content Type ◽  
Starting Point ◽  
Climate Change Risks ◽  
The Uk ◽  
The Impact

Purpose – The purpose of this paper is to report results from a survey on emerging climate changes and the risks to the operation of building assets in the UK. The property sector is facing major challenges as a result of projected climate change scenarios. Predictions concerning future climate change and the subsequent impact on building operations are still subject to a high degree of uncertainty. However, it is important that building stockholders consider a range of possible future risks that may influence the operation of their assets. Design/methodology/approach – The literature review and questionnaire are used to elicit and assess the likelihood of occurrence of climate change risks impacting building operations. The survey was carried out among building stockowners and professionals in the UK. Statistical methods were used to rank and compare the findings. Findings – The majority of the respondents strongly agreed that the list of risks that were elicited from the literature will have an impact on their building assets within a 0-5 years’ time horizon. It was found that the professionals were most concerned about higher energy prices and an increase in operation costs in general; they were least concerned about an electricity blackout. Research limitations/implications – This paper is limited to the UK, and regional variations are not explored. Nevertheless, the buildings’ operation risk study provides a starting point for further investigations into the emerging risks from climate change, and their impact on the operation of building stock. Future work could investigate direct mapping between climate risks and the financial value of properties. Originality/value – Findings of this paper can help professionals and building stockowners improve their understanding of climate change risks and the impact on their assets. This paper could also help these individuals to formulate appropriate adaptation and mitigation strategies.

scholarly journals How entrepreneurship, culture and universities influence the geographical distribution of UK talent and city growth

2017 ◽  
Vol 36 (2) ◽  
pp. 178-195 ◽  
Author(s):  
Marc Cowling ◽  
Neil Lee
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Economic Value ◽  
Value Added ◽  
Content Type ◽  
Knowledge Based ◽  
Economic Landscape ◽  
The Uk ◽  
The City ◽  
Innovative Capacity

Purpose The creation and distribution of human capital, often termed talent, has been recognised in economic geography as an important factor in the locational decisions of firms (Florida, 2002), and at a more general level as a key driver of economic growth (Romer, 1990). The purpose of this paper is to consider how talent is created and distributed across the cities of the UK and the key factors which are driving this spatial distribution. They also consider what the economic outcomes of these disparities are for cities. Design/methodology/approach The multivariate models can estimate the dynamic inter-relationships between human capital (talent), innovative capacity, and economic value added. These can be estimated, using talent as an example, in the form: human capital measurei =α0i+α1i innovative capacity +α2i quality of life + α3i labour market indicators + α4i economic indicators + α5i HEI indicators + β6i population demographics + β7i population + υi. Findings The first finding is that talent is unequally distributed across cities, with some having three times more highly educated workers than others. Talent concentration at the city level is associated with entrepreneurial activity, culture, the presence of a university, and to a lesser degree the housing market. This feeds into more knowledge-based industry, which is associated with higher gross value added. Research limitations/implications The research is limited in a practical sense by the fact that UK data at this level have only become available quite recently. Thus, it is only possible to capture talent flows and city growth in a relatively small window. But the prospects going forward will allow more detailed analysis at the city level of the relationship between talent flows and local economic growth. And additional insights could be considered relating to the on-going changes in the UK university system. Practical implications The question of whether universities are simply producers of talent or play a much broader and deeper role in the socio-economic landscape and outcomes of cities is an open one. This research has identified what the key drivers of city level economic growth and knowledge creation are, and sought to explain why some cities are capable of attracting and harnessing three times more talent than other cities. This has significant implications for the future development of UK cities and for those seeking to address these imbalances. Social implications Universities are a major economic agent in their own right, but they are increasingly being asked to play a wider role in local economic development. The authors’ evidence suggests that universities do play a wider role in the growth and development of cities, but that there are large discrepancies in the subsequent spatial distribution of the talent they create. And this has significant implications for those seeking to address these imbalances and promote a broader and less unequal economic landscape. Originality/value The authors explore how cities create economic value via a process whereby talent is attracted and then this stimulates knowledge-based industry activity. The originality relates to several key aspects of the work. First, the authors look at the stock of talent, and then the authors explore how “new” talent from universities is attracted by looking at graduate flows around the cities of the UK, differentiating between top-level graduates and less talented graduates. The authors then allow a wide variety of economic, cultural, and population factors to influence the locational decision of talented people. The results highlight the complexity of this decision.

Saudi Aramco IPO holds key to diversification plans

2016 ◽  
Keyword(s):  
Leisure Activities ◽  
Value Added ◽  
Cultural Changes ◽  
Content Type ◽  
Goods And Services ◽  
Oil Revenue ◽  
Saudi Aramco ◽  
New Energy ◽  
Vision 2030 ◽  
Crown Prince

Significance This development is at the centre of 'Vision 2030', the kingdom's new medium-term strategy for reducing reliance on crude oil revenue and improving economic efficiency. The unveiling of the strategy last month by Deputy Crown Prince Mohammed bin Salman bin Abd-al-Aziz Al Sa'ud, the country's de facto prime minister, was followed on May 7 by sweeping changes to the cabinet and government structure, including the replacement of the kingdom's long-serving oil minister, Ali al-Naimi. Impacts Value-added tax (VAT) on non-essential goods and services could be introduced by 2020. The new energy minister will have greater ability to push through subsidy reforms. Efforts to value and float Saudi Aramco could spark some opposition from within the royal family. The plan could bring important cultural changes, notably through increasing women's employment, leisure activities and entertainment. If successful, the strategy will help reduce unemployment, although the target of 7% is hugely ambitious.

scholarly journals Exploring 30 years of UK public services management reform – the case of health care

2017 ◽  
Vol 30 (6-7) ◽  
pp. 615-625 ◽  
Author(s):  
Ewan Ferlie
Keyword(s):  
Health Care ◽  
Public Management ◽  
Network Governance ◽  
Health Care Sector ◽  
Policy Reforms ◽  
Content Type ◽  
Management Reform ◽  
Big Picture ◽  
The Uk ◽  
Management Scholarship

Purpose The purpose of this paper is to offer a personal interpretation of the nature and impact of alternative narratives of public management reform evident in the UK since the 1980s. These reforms are examined through the prism of alternative bodies of public management scholarship. They are applied to the specific case of the health care sector as a concrete focus. Design/methodology/approach The study is a personal overview of various streams of policy reforms in the UK health care sector and associated public management scholarship. This is an interpretive essay. Findings The new of public management remains the dominant reform, narrative and highly embedded, even if dysfunctionally so. Network governance reforms have had some enduring influence. Digital era governance has so far had only weak influence. A reprofessionlisation counter narrative shows variable and oscillating influence. Originality/value The study contributes to a developing narrative-based stream in public management scholarship. It also provides a “big picture” assessment of reforming in the UK health care sector since the 1980s.

23. Value Added Tax

Business Law ◽  
2021 ◽  
pp. 230-234
Author(s):  
J. Scott Slorach ◽  
Jason Ellis
Keyword(s):  
Value Added ◽  
Value Added Tax ◽  
Goods And Services ◽  
One Year ◽  
The Uk ◽  
The Cost ◽  
Made In

This chapter discusses value added tax (VAT) in the UK. VAT is charged on supplies of goods and services made in the UK. Where a person makes taxable supplies in excess of a set limit in any one-year period, he must register with HMRC. He must then account to HMRC for VAT on all taxable supplies made. The total amount payable may be reduced by the amount of VAT paid on certain taxable supplies made to him. The liability to pay VAT to HMRC rests on suppliers of goods and services. However, the cost of the tax is actually borne by suppliers’ customers who are charged VAT on the goods and services they purchase. VAT is charged in the UK under the Value Added Tax Act (VATA) 1994.

Scandals of abuse: policy responses in intellectual disabilities

2015 ◽  
Vol 35 (1/2) ◽  
pp. 107-124 ◽  
Author(s):  
Peter Mark Halladay ◽  
Charlene Harrington
Keyword(s):  
Theoretical Framework ◽  
Case Study Methodology ◽  
Content Type ◽  
Descriptive Case Study ◽  
Individual Level ◽  
Policy Responses ◽  
The Social ◽  
The Usa ◽  
The Individual ◽  
The Uk

Purpose – The purpose of this paper is to compare two scandals related to the care of individuals with intellectual and developmental disabilities (I/DD) in the USA and the UK. Design/methodology/approach – A descriptive case study methodology was used to conduct an in-depth qualitative analysis of the two scandals to examine the process of scandal development, and to survey the policy response against policy trends and theories of abuse in each case. The two cases were systematically analysed against a theoretical framework derived from Bonnie and Wallace (2003) theoretical framework for understanding abuse based on its sociocultural context, the social embeddedness of organisations providing care, and the individual level characteristics and interactions of subjects and carers. Findings – In both cases the process of scandal construction was comparable, and each case offered confirmatory support to extant theories of abuse, and to wider policy trends within I/DD. Research limitations/implications – The study examines only the short-term policy responses to the scandals in two countries, based on published material only. Originality/value – This paper contributes an international comparison of the similarities and differences in the social construction of scandal and the policy responses to abuse and neglect of a vulnerable population using systematic analytical frameworks.

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