Taxable Capacity, Tax Efforts and Structural Break: Do the Child States Follow Their Respective Parents?

2016 ◽  
Vol 5 (2) ◽  
pp. 186-219 ◽  
Author(s):  
Nagendra Kumar Maurya ◽  
Sapana Singh ◽  
Shagun Khare
Keyword(s):  
Structural Break ◽  
Uttar Pradesh ◽  
Value Added ◽  
Industrial Sector ◽  
Jel Classification ◽  
Conclusive Evidence ◽  
The State ◽  
Tax Revenue ◽  
Break Points ◽  
The Impact

The present article makes an attempt to test the hypothesis whether smaller states have better fiscal efficiency in terms of own tax revenue collections or not. This has been tested by taking the case of three states Uttar Pradesh, Madhya Pradesh and Bihar with their child states Uttarakhand, Chhattisgarh and Jharkhand, respectively. For this purpose tax buoyancy, tax capacity and efforts, and structural break models—Chow test (with known break points) and Quandt likelihood ratio (QLR) test (with unknown break points), to see the impact of value added tax (VAT) on own tax revenue (OTR)—have been estimated. Log-log regression model was adopted for both calculating tax buoyancies and taxable capacity of each parent and child state. However, we did not find any conclusive evidence that child states have better tax buoyancy or tax efforts. On the basis of our observations, we concluded that the size of the state is not a major determinant affecting revenue efficiency of the state. Other supplementary policies like efficient tax administration, developed industrial sector, reduced exemptions and concessions, broad-based and effective tax rates are equally important. JEL Classification: H11, H21, H71, R50

Land Records Modernisation: Maharashtra

2021 ◽  
Author(s):  
Deepika Jha ◽  
Varun Panickar ◽  
Dipankar Das
Keyword(s):  
Urban Areas ◽  
Uttar Pradesh ◽  
Urban Land ◽  
Indian Institute ◽  
The State ◽  
Human Settlements ◽  
Legislative Framework ◽  
The Impact ◽  
Land Records

During 2017–2020, a team of researchers at the Indian Institute for Human Settlements conducted a series of primary and secondary studies on land record modernisation initiatives in five states and union territories of India. Based on extensive on-ground research, this work is part of a five-volume set that presents findings from Delhi, Maharashtra, Chandigarh, Karnataka and Uttar Pradesh, with a focus on urban land and property records and the associated complexities. This volume on Maharashtra brings out the impact of having a historically enshrined system of maintaining property records even in urban areas, created via city surveys. The state also has a supporting legislative framework, which has enabled capturing some details of vertical property, although in a fragmented and decentralised manner.

scholarly journals Value Added Tax and Informality: Determinants of Registration of Enterprises under State VAT in India

2018 ◽  
Vol 13 (1) ◽  
pp. 21-48
Author(s):  
Sacchidananda Mukherjee ◽  
R. Kavita Rao
Keyword(s):  
Value Added ◽  
Jel Classification ◽  
The State ◽  
Sales Tax ◽  
Value Added Tax ◽  
Taxation System

Unincorporated enterprises often bypass formal regulations in general and taxation in particular. Bringing unincorporated enterprises under the taxation system is a challenge often faced by tax administrators, and it is in this regard that the present study explores the factors which influence the decision of unincorporated enterprises to register with the state value added tax (VAT)/sales tax authority across states in India. This analysis is limited to the decision regarding registration. It is not necessary that enterprises that are registered pay taxes and/or file returns—however, the process of registration does provide some information to the tax department for follow ups. The study throws up some interesting results for policymakers and tax administrators. JEL Classification: H25, H32, H26, L53

On the Importance of the Tax System in Marginal Cost of Funds Calculations

2011 ◽  
Vol 11 (1) ◽  
Author(s):  
Mickael Beaud
Keyword(s):  
General Equilibrium ◽  
Marginal Cost ◽  
Analytical Formula ◽  
Value Added ◽  
Tax Revenue ◽  
Empirical Estimates ◽  
Analytical Formulas ◽  
The Impact ◽  
Labor Income Taxation ◽  
Marginal Cost Of Funds

Abstract Several papers have attempted to derive computable analytical formulas for the Marginal Cost of Funds (MCF). However, this literature is often cast in the pure labor supply general equilibrium model, which is not completely consistent with real tax systems where Labor Income Taxation (LIT) is not the only instrument used by governments. Hence, we explicitly introduce Value-Added Taxation (VAT) on consumption goods in the conventional model, and we derive an analytical formula for the MCF which does incorporate general equilibrium interactions between the different tax bases. Then, we illustrate how much this matter for empirical estimates of MCF using French data. Our numerical example suggests that, when computing MCF for a LIT reform, taking account of the impact of LIT reform on tax revenue from VAT can make a great deal of difference, typically increasing MCF and accounting for around 0.2 to 0.8 of estimates. In addition, MCF is then really less likely to be less than one than in the conventional framework.

Trends in Collection of Value Added Tax in West Bengal: A Commentary

2016 ◽  
Vol 5 (2) ◽  
pp. 238-248
Author(s):  
H. K. Dwivedi ◽  
Sudip Kumar Sinha
Keyword(s):  
State Government ◽  
West Bengal ◽  
Value Added ◽  
Jel Classification ◽  
Sales Tax ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Tax Base ◽  
Explanatory Variables ◽  
National Economic

As per constitutional provisions of Indian federal finance, value added tax (VAT) (and sales tax) is the main source of revenue for the state government. Value added tax (including sales tax) collected by the Directorate of Commercial Taxes, West Bengal, accounts for approximately 62 per cent of state’s own tax revenue (SOTR). Studies on collection of taxes suggest that revenue from all taxes not only depends directly on the nature and growth of the tax base but depends also on other factors such as economic reforms, global and national economic condition and tax effort of the tax collecting department. The motivation of this article is to try to analyze the nature of the trends in collection of VAT in West Bengal during recent years and to find out the effect of different explanatory variables on collection of VAT. JEL Classification: H26, H71, H3

scholarly journals TRANSMISI DAMPAK MELALUI JARINGAN PERDAGANGAN: PENDEKATAN ASIAN-IO

2014 ◽  
Vol 16 (4) ◽  
pp. 339-372
Author(s):  
Ibrahim Ibrahim ◽  
Tri Winarno ◽  
Melva Viva Grace ◽  
Yan Fitri
Keyword(s):  
Financial Crisis ◽  
Global Financial Crisis ◽  
Value Added ◽  
Jel Classification ◽  
Input Output ◽  
Asian Countries ◽  
Production Chain ◽  
The Us ◽  
Similar Point ◽  
The Impact

Global financial crisis which began in the US in the latter part of 2008 hit a lot of countries in both trade and finance. In trade aspect, the crisis spread widely; in Indonesia, the total export value in 2009 dropped to 14,3%. Therefore, the economy of China, tightly linked with Asian countries including Indonesia, which rapidly rose before the crisis but slowed after it should be monitored as this condition, could indirectly hold down Indonesia’s GDP. Applying RAS method to update Asian IO data, this research has attempted to describe the trade structure of Asian countries in 2010. Also, it implemented a simulation of the impact of US and China’s GDP decline and US exports on Indonesia’s GDP, both at aggregate and sector levels. The result of the mapping shows that Indonesia is getting more dependent on China. Generally, the link between Indonesia’s exported products and global production chain is weak. Indonesia’s export commodities which are mostly of intermediate goods have low contribution towards value added. Moreover, the result of the simulation shows that 1% decrease in China’s GDP has greater impact on Indonesia’s GDP (0,14%) than that of the US (0,05%) and EU (0,07%) though with similar point.  Keyword: Trade Interactions, Input Output Model JEL Classification : F16, R15

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 Effect of VAT Adoption on Manufacturing Firms in Ethiopia

2020 ◽  
Vol 12 (10) ◽  
pp. 75
Author(s):  
Soule Sow ◽  
Mesay Gebresilasse
Keyword(s):  
Small Firms ◽  
Production Efficiency ◽  
Raw Materials ◽  
Value Added ◽  
Manufacturing Firms ◽  
Tax Revenue ◽  
Difference In Differences ◽  
Tax Rate ◽  
Revenue Efficiency ◽  
The Impact

To remedy their low fiscal capacity problem, many developing countries adopted value-added taxation because they believe it will raise tax revenue and improve the production efficiency of firms. In this paper, we study the impact of the adoption of the value-added tax (VAT) on firms by analyzing the introduction of VAT in Ethiopia in 2003 using panel data of manufacturing firms (1996-2009). By law, a firm is required to register for VAT if it is big (its revenue is higher than 500,000 Birr); otherwise, the firm is small and faces a much lower turnover tax rate. Using a difference in differences strategy with big firms as a treatment and small firms as control, and excluding firms that might potentially bunch around the threshold, we find taxes paid, reported revenue, taxes paid out of revenue, value-added, and raw materials use increase for big firms. However, the share of inputs in revenue fell suggesting VAT increased revenue efficiency by not production efficiency.

scholarly journals The concept of marketing of balanced development and features of its implementation in the food market

2020 ◽  
pp. 80-95
Author(s):  
Vаlentyna Stadnyk ◽  
Galyna Pchelianska ◽  
Yuliia Holovchuk ◽  
Liudmyla Dybchuk
Keyword(s):  
Sustainable Development ◽  
Food Production ◽  
Swot Analysis ◽  
Industrial Sector ◽  
The State ◽  
Balanced Development ◽  
Organic Products ◽  
Food Market ◽  
Definition Of ◽  
The Impact

Purpose. The purpose of this paper was to analyze the development of the food market in Ukraine and determine its compliance with the goals of sustainable economic development, to formulate the concept of marketing of balanced development in relation to the food market and to identify a set of tasks that need to be addressed within this concept. Methodology / approach. While writing the article we used the following: methods of content analysis – to study scientific approaches to the interpretation of marketing tasks in terms of the concept of «sustainable development»; morphological analysis, generalization and scientific abstraction – to clarify the essence of the definition of «marketing of balanced development» and its conceptual content; economic-statistical and comparative analysis – for research, the dynamics of the food market and the market of organic products in Ukraine, the structure of exports of agricultural products to Ukraine, as well as the impact of the agro-industrial sector on the environment. To visualize the results, we used methods of graphical and tabular representation. The method of SWOT analysis assessed the qualitative characteristics of the state of the market of organic products of Ukraine in the light of opportunities and obstacles to the implementation of the concept of «sustainable development». Abstract-logical method was used to form a complex of marketing of balanced development, conclusions of the article and directions for further research. Results. The article is devoted to the study of the dynamics of the Ukraine food market development as a component of the national economy and food security of the state. It was determined that the areas of agro-food production, food processing and food products trade were showing growth due to increased demand in domestic and foreign markets. However, as a result of technological and resource features, agro-food production has a negative impact on the environment of Ukraine. Trends in the development of organic production as a way to implement the concept of sustainable development in the food sector were studied. The author’s interpretation of the essence of the concept of balanced market development was offered and the complex of tasks of marketing for the enterprises functioning in the food market was defined. Originality / scientific novelty. The article defines the magnitude and extent of the impact of agro-food production on the environment. The essential content of the definition of «marketing of balanced development» in relation to the agro-industrial sector through the prism of the concept of «sustainable development» was clarified. For the first time, a SWOT analysis was used to assess the state of the market of organic products of Ukraine in the light of opportunities and obstacles to the implementation of the concept of «sustainable development», which allowed determining the main directions for improving the marketing set for food market entities. The provision of the concept of sustainable development in the food sector was further developed. Practical value / implications. The main results of the study can be used for (i) structuring tasks of the marketing of balanced development of agribusiness entities; (ii) determining balanced development marketing complex for enterprise, will be relevant for both the organic market and the food market as a whole; (iii) definition of the purposes of balanced development at development of strategy of the enterprises; (iv) development of strategic directions of activity for the enterprises of the organic market on the basis of the conducted SWOT analysis.

scholarly journals The Impact of Structural Changes in the Indian Manufacturing Industries: 1980-2013

2018 ◽  
Vol 10 (2) ◽  
pp. 6-16
Author(s):  
Gholamreza Fathipour ◽  
Pratibha S. Gaikwad
Keyword(s):  
Structural Changes ◽  
Industrial Structure ◽  
Value Added ◽  
Industrial Sector ◽  
Manufacturing Industries ◽  
Motor Vehicles ◽  
Economic Policies ◽  
Important Indicator ◽  
Industrial Activities ◽  
The Impact

With regard to the importance of the manufacturing, industrial sector for economic growth and its priority for motivating other sectors to development, the paper is aimed to study the structural changes condition in the Indian manufacturing industries. The changing in value-added of industrial activities due to industrial and economic policies is an important indicator for the recognition of manufacturing industries structure. We have analyzed the industrial structure and competitiveness of each industrial activity by using data value-added of manufacturing industries and common indexes such as the structural changes index in the period of 1980-2013. The results of structural index analysis showed that of textile products; leather; basic chemicals and chemical products in the periods of 1980-98  and also in the periods after 2000industries wearing apparel; dressing and dyeing of fur tanning and dressing of leather ; wood and products of wood; motor vehicles, trailers and semi-trailers; recycling; other transport equipment have been the industrial activities that their structural changes indexes has been positive and they have had the highest competitiveness in comparison to other industrial activities and the greatest opportunities to create value-added. 

scholarly journals The impacts of in-state procurement preference policies on the economy of South Carolina

2018 ◽  
Vol 18 (3) ◽  
pp. 240-256 ◽  
Author(s):  
Sawsan Abutabenjeh ◽  
Stephen Gordon ◽  
Berhanu Mengistu
Keyword(s):  
South Carolina ◽  
Value Added ◽  
The State ◽  
Personal Income ◽  
Economic Indicators ◽  
Total Output ◽  
Content Type ◽  
Gross State Product ◽  
State Preference ◽  
The Impact

Purpose This paper aims to answer the question: What are the impacts of implementing in-state procurement preference policies on the economy of the state of South Carolina? Design/methodology/approach Toevaluate the impacts, the following six economic indicators were analyzed: jobs, personal income, real disposable income, output (sales), gross state product and value added. The data were collected from the South Carolina Procurement Services Office and were then analyzed using the Regional Economic Model Policy Insight (REMI PI+) for economic forecasting and policy analysis. The results from the REMI PI+ showed that implementing in-state preference policies benefitted the state and its communities economically. Findings Specifically, from 2010 until 2017, the total economic impact of implementing preference policies generated $17m in total output, 135 total job-years, $10.22m in gross state product (GSP), $10.27m in value added, $7.52m in income and $5.14m in real disposable personal income. The impact on the wholesale trade industry was over $5m in total industry output and approximately 27 jobs-years. In the manufacturing sector, the total impact was over $4m in output and approximately 17 jobs-years. The impact on the construction industry was approximately $3m in output and approximately 30 jobs-years. Although the values of these economic indicators were very small compared to the size of the state economy, they did outweigh the direct cost of implementing preference policies, thus demonstrating that overall the in-state preference policies contributed to South Carolina’s economy. However, further research is warranted to identify more precisely the benefits and costs of implementing preference policies.

Sign in / Sign up

Export Citation Format

Share Document