scholarly journals The Consequences of Shadow Economy and Corruption on Tax Revenue Performance in Nigeria

2019 ◽  
Vol 29 (3) ◽  
pp. 64-79
Author(s):  
Cordelia Onyinyechi Omodero
Keyword(s):  
Informal Economy ◽  
Shadow Economy ◽  
Negative Impact ◽  
Secondary Data ◽  
Ordinary Least Squares ◽  
Tax Revenue ◽  
Transparency International ◽  
Theoretical Approaches ◽  
Corruption Perception ◽  
The Government

Abstract Shadow economy and corruption are the two harmful activities that do not work in the favour of tax revenue performance. As a result it renders an effective government incapacitated and unable to carry out its social responsibilities. This study considers the effect of the informal economy and graft on tax revenue performance in Nigeria using secondary data that cover a period from 1996 to 2018. This period has been covered by the corruption perception index captured by the Transparency International for Nigeria. Despite the theoretical approaches available in measuring the size of the shadow economy, the ordinary least squares technique is specifically used to perform the multi-regression analysis to arrive at the empirical results which indicate that both the shadow economy and corruption have negative influences on tax revenue performance in Nigeria, although the negative impact of corruption on tax revenue is more robust and significant. Thus, the study suggests among others that the government should step up action against corruption and also address the root causes of shadow economy in order to make the participants of the informal sector willing to formalize their businesses and voluntarily comply with tax payment obligations.

scholarly journals The Financial and Economic Implications of Underground Economy: The Nigerian Perspective

2019 ◽  
Vol 8 (2) ◽  
pp. 155-167 ◽  
Author(s):  
Cordelia Onyinyechi Omodero
Keyword(s):  
Economic Growth ◽  
Shadow Economy ◽  
Least Squares Method ◽  
Underground Economy ◽  
Ordinary Least Squares ◽  
Economic Benefits ◽  
Tax Revenue ◽  
Economic Implications ◽  
The Government ◽  
The Impact

Abstract The economic and financial effect of underground economy in all emerging countries is of tremendous concern. Sometimes due to the inputs of the sector to economic growth of nations, it is usually assumed that the government has nothing to lose, meanwhile it goes beyond the seemingly economic benefits, but provides an avenue whereby the government has to suffer financial losses through unavoidable and inherent tax evasions. This study evaluates the impact of shadow economy using the transaction approach and the MIMIC approach which helped to determine the size of the shadow economy as a percentage of GDP and the tax revenue losses suffered by the government for a period spanning from 1991 to 2018. Ordinary least squares method is used to examine the impact of tax revenue earned and lost on Nigeria’s GDP. The regression results indicate that tax revenue earned has a significant positive impact on economic growth, while the tax revenue loss has a significant negative influence on GDP. The study finds that underground economy activities do more harm to the government than good and is also detrimental to Nigeria’s economic progress. Therefore the suggestion among others is that the legal activities among them should be formalized and taxed while the unlawful ones should be exterminated.

scholarly journals Taxation Income, Graft and Informal Sector Operations in Nigeria in Relation to Other African Countries

2020 ◽  
Vol 11 (2) ◽  
pp. 163 ◽  
Author(s):  
Cordelia Onyinyechi Omodero
Keyword(s):  
Informal Sector ◽  
Informal Economy ◽  
Secondary Data ◽  
Tax Revenue ◽  
Economic Activities ◽  
African Countries ◽  
Legal Structure ◽  
Revenue Collection ◽  
The Government ◽  
Severe Penalty

This study investigates the influence of the informal sector and graft on income accruing to the government through taxation in Nigeria. Informal economy and graft are the two critical activities that inhibit government tax revenue collection and negatively affect the performance of an effective government. The study employs secondary data that cover a period from 2000 to 2018.This period is the millennium period which the country is expected to overcome corruption and curtail the level of informal economic activities prevailing in the nation, but it appears that all efforts seem not to be yielding the required results. In order to achieve the objective of this study, the multi-regression analysis is performed and the results indicate that corruption is very harmful to tax revenue collection while the informal economy has no significant impact on tax revenue within the millennium period covered by this study. Thus, the study suggests formalization of legal unofficial economy activities and total eradication of corruption in Nigeria through the strengthening of the anti-graft agencies, reinforcement of the legal structure and introduction of a more severe penalty for the perpetrators.

Fiscal Deficit and Economic Growth in Bangladesh

2016 ◽  
Vol 62 (1) ◽  
pp. 31-42 ◽  
Author(s):  
Ebney Ayaj Rana ◽  
Abu N. M. Wahid
Keyword(s):  
Economic Growth ◽  
Budget Deficit ◽  
Negative Impact ◽  
Political Stability ◽  
Ordinary Least Squares ◽  
Policy Implications ◽  
Government Budget ◽  
The Government ◽  
The Impact ◽  
Government Budget Deficit

The economy of Bangladesh is currently going through a period of continuous budget deficit. The present data suggest that the government budget deficit, on average, is nearly 5% of the country’s GDP. This has been true since the early 2000s. To finance this deficit, governments have been borrowing largely from domestic and foreign sources resulting in inflationary pressure on one hand, and crowding out of private investments on the other. During the same period, although the economy has grown steadily at a rate of more than 6%, this growth is less than the potential. This article presents an econometric study of the impact of government budget deficits on the economic growth of Bangladesh. We conduct a time-series analysis using ordinary least squares estimation, vector error correction model, and granger causality test. The findings suggest that the government budget deficit has statistically significant negative impact on economic growth in Bangladesh. Policy implications of our findings include reestablishing the rule of law, political stability in the country, restructuring tax structure, closing tax loopholes, and harmonizing fiscal policy with monetary policy to attract additional domestic and foreign investment.

scholarly journals Implikasi Penerapan Undang-Undang Nomor 11 Tahun 2016 Tentang Pengampunan Pajak (Tax Amnesty) Dalam Meningkatkan Kepatuhan Wajib Pajak

2017 ◽  
Vol 7 (1) ◽  
pp. 1
Author(s):  
Agus Saiful Abib ◽  
Efi Yulistyowati ◽  
Amri Panahatan Sihotang
Keyword(s):  
Secondary Data ◽  
Fiscal Year ◽  
Tax Revenue ◽  
Short Term ◽  
Descriptive Research ◽  
Tax Amnesty ◽  
The Government ◽  
To Come ◽  
National Tax

<p>Tahun 2016, pemerintah mengeluarkan kembali kebijakan <em>Tax</em> <em>Amnesty </em>yang dituangkan dalam Undang-Undang Nomor 11 Tahun 2016 tentang Pengampunan Pajak. Pengampunan Pajak (<em>Tax</em> <em>Amnesty)</em> ini diharapkan dapat meningkatkan penerimaan pajak dalam jangka pendek melalui pembayaran uang tebusan, meningkatkan penerimaan pajak dalam jangka panjang melalui perluasan basis data pemajakan, meningkatkan kepatuhan Wajib Pajak, transisi ke sistem perpajakan baru yang lebih kuat dan adil, dan mendorong rekonsiliasi perpajakan nasional. Sehubungan dengan hal tersebut, untuk mengetahui apakah program <em>Tax</em> <em>Amnesty</em> Indonesia Tahun 2016 berhasil atau tidak, khususnya dalam meningkatkan kepatuhan wajib pajak, maka perlu dilakukan penelitian tentang : “Implikasi Penerapan Undang-Undang Nomor 11 Tahun 2016 tentang Pengampunan Pajak (<em>Tax</em> <em>Amnesty</em>) dalam Meningkatkan Kepatuhan Wajib Pajak”. Adapun permasalahan yang akan dibahas adalah bagaimana implikasi penerapan Undang-Undang Nomor 11 Tahun 2016 tentang Pengampunan Pajak<em> (Tax</em> <em>Amnesty)</em> dalam meningkatkan kepatuhan Wajib Pajak ? Berdasarkan implikasi tersebut, maka bagaimana sebaiknya pengaturan perpajakan yang akan datang ? Berdasarkan permasalahan tersebut jenis penelitian ini adalah yuridis normatif yang akan dikaji dengan pendekatan perundang-undangan, spesifikasi penelitiannya diskriptif analitis, data yang dipergunakan data sekunder, yang dianalisis secara kualitatif. Hasil penelitian menunjukkan bahwa implikasi penerapan Undang-Undang Nomor 11 Tahun 2016 tentang Pengampunan Pajak<em> (Tax</em> <em>Amnesty)</em> dapat meningkatkan kepatuhan Wajib Pajak, dan berdasarkan implikasi tersebut SE Dirjen Pajak No. SE - 06/PJ/2017 seharusnya tidak hanya untuk tahun pajak 2017 saja, tetapi juga untuk tahun-tahun yang akan datang. Di samping itu perlu ada peraturan yang mengatur tentang pengawasan terhadap pelaksanaan hak Wajib Pajak.</p><pre>In 2016, the government re-issue the Tax Amnesty policy as outlined in Law Number 11 Year 2016 on Tax Amnesty. The Tax Amnesty is expected to increase tax revenue in the short term through ransom payments, increase tax revenues over the long term through the expansion of taxation databases, increase taxpayer compliance, transition to a stronger and more just tax system, and encourage national tax reconciliation. In relation to this matter, to find out whether the program of Tax Amnesty Indonesia Year 2016 succeed or not, especially in increasing taxpayer compliance, it is necessary to do research on: "Implications Implementation of Law Number 11 Year 2016 on Tax Amnesty in Improving Taxpayer Compliance ". The problem to be discussed is how the implications of the implementation of Law Number 11 Year 2016 on Tax Amendment (Tax Amnesty) in improving taxpayer compliance? Based on these implications, then how should the taxation arrangements to come? Based on the problem, this type of research is normative juridical which will be studied with the approach of legislation, the analytical descriptive research specification, the data used secondary data, which analyzed qualitatively. The result of the research shows that the implication of the implementation of Law Number 11 Year 2016 on Tax Amnesty can improve Taxpayer compliance, and based on the implication of SE Dirjen Pajak No. SE - 06 / PJ / 2017 should not only be for the fiscal year 2017 alone, but also for the years to come. In addition, there should be a regulation that regulates the supervision of the implementation of taxpayers' rights.</pre>

scholarly journals CAN REMITTANCES BOOST TAX REVENUES IN ZIMBABWE? A SECONDARY QUARTERLY TIME-SERIES ANALYSIS

2021 ◽  
Vol 9 (2) ◽  
pp. 128-144
Author(s):  
Michael Takudzwa Pasara ◽  
◽  
Michael Zuze ◽  
Keyword(s):  
Time Series ◽  
Time Series Data ◽  
Good Governance ◽  
Value Added ◽  
Ordinary Least Squares ◽  
Series Data ◽  
Tax Revenue ◽  
Tax Revenues ◽  
Main Challenge ◽  
The Government

The study applied the ordinary least squares (OLS) technique on quarterly time-series data to analyze if remittances can boost tax revenue in Zimbabwe. The main challenge faced in Zimbabwe is the insufficient tax revenues to finance growing public spending needs. Results indicate that the share of remittances both in the current and lagged period significantly influenced income tax revenue and the volume of manufacturing. Trade openness was found to be insignificant. Similar results were also observed for the variables when value-added tax to total revenue was the dependent variable. When lagged variables were taken into account, results showedthat only remittances were significant. Thus, increased remittance inflows have significant potential to generate more taxes for the government through income and consumption taxes. The study recommends the creation of platforms, which stimulate and attract more remittances, such as reducing costs of sending remittances through formal channels. Secondly, good governance and quality institutions provide appropriate economic environment and growth policies. Economic growth fosters increased and sustainable tax due to an increased tax base.

scholarly journals Sustainable management of smallholder oil palm farming during the COVID-19 pandemic

2021 ◽  
Vol 892 (1) ◽  
pp. 012064
Author(s):  
H L Nainggolan ◽  
W S S Waruwu ◽  
C K Gulo ◽  
R C Doloksaribu ◽  
T M H Siahaan
Keyword(s):  
Oil Palm ◽  
Sustainable Management ◽  
Agricultural Sector ◽  
Negative Impact ◽  
Secondary Data ◽  
Production Costs ◽  
Organic Fertilizers ◽  
Ecological Conservation ◽  
The Government ◽  
North Sumatra

Abstract The emergence of the CoronaVirus Disease in 2019, until now has had a negative impact on various sectors of people’s lives including the agricultural sector. Smallholder oil palm farming has also experienced a negative impact due the pandemic. This research aims to knowing the situation of smallholder oil palm farming before and during pandemic; and to knowing the readiness of farmers to manage smallholder oil palm farming; and to knowing the sustainability of the management of smallholder oil palm farming during the pandemic. This research was conducted in STM Hilir Subdistrict, Deli Serdang District, North Sumatra, Indonesia, which was carried out in September - December 2020. The data used were primary and secondary data which were analyzed descriptively with income analysis method and simple tabulation. Based on the results of data analysis, concluded: smallholder oil palm farming during the COVID-19 pandemic was not stable, due to an increase in production costs of 20.2%/month, and a decrease income of farmers by 6.69%/harvest season/ha. In period of COVID-19 pandemic-19 59% of farmers said they are ready to develop their farming in a sustainable manner. Sustainable management smallholder oil palm farming during the pandemic is going well, based on indicators of ecological conservation, where farmers tend to use organic fertilizers. In accordance with the results of the study suggested; so that the government provides continuous counseling to farmers, provides incentives, subsidies for production facilities for farmers, so that farmers continue to apply health protocols in carrying out their farming activities.

scholarly journals Role of Value Added Tax in Total Tax Revenue: An Empirical Study of Nepal

2020 ◽  
Vol 1 (1) ◽  
pp. 1-12
Author(s):  
Ananta Raj Dahal
Keyword(s):  
Value Added ◽  
Secondary Data ◽  
Tax Revenue ◽  
Government Revenue ◽  
Total Revenue ◽  
Value Added Tax ◽  
Government Organizations ◽  
The World ◽  
The Government

This paper examines the role of Value Added Tax (VAT) in total tax of Nepal. Tax is the main sources of government revenue. There are different kinds of tax systems used in the world. The concept of VAT had been introduced in 1919 A D from Germany as a new concept of indirect tax system of the world. VAT system have introduced from 1995 A D in Nepal. The specific objectives are to analyse the trend of VAT and to examine the correlation between VAT with total revenue and total tax revenue in Nepal. This study is based on secondary data, which are incorporated from the Ministry of Finance and other related government as well as non-government organizations. Both analytical and descriptive statistics are applied as methods in this study. At the process of data analysis some statistical tools like regression, correlation, etc. are used. The study shows that VAT has significant percentage in total revenue and total tax revenue in Nepal. There are more than 99 present variations due to VAT in total revenue, total tax revenue and indirect tax revenue. All these relationship are significant as r >6 PEr everywhere. Thus, VAT has significant contribution in government revenue of Nepal. But the system of VAT must be improved to increase its effectiveness through the government policy level and increase awareness tax payers about baling system of VAT.

scholarly journals ANALISIS POTENSI, EFEKTIFITAS DAN KONTRIBUSI PAJAK HOTEL TERHADAP PENDAPATAN ASLI DAERAH KABUPATEN SLEMAN

2016 ◽  
Vol 2 (2) ◽  
Author(s):  
Rofian Pujiasih ◽  
Dewi Kusuma Wardani
Keyword(s):  
Data Use ◽  
Secondary Data ◽  
Tax Revenue ◽  
Tax Rates ◽  
Potential Effectiveness ◽  
Local Revenue ◽  
Tax Revenues ◽  
Several Variables ◽  
Scientific Papers ◽  
The Government

This study aims to determine the potency, effectiveness and contribution tax in Sleman district. To calculate the potential and effectiveness of hotel tax used several variables: number of to define average, the number of days in a year, and hotel tax rates. As for the contribution of data use hotel tax revenues and actual revenues revenue. This study used descriftif research and the method of documentation that is by collecting data that is used to collect secondary data from reports of hotel tax revenue, the rules relating to tax hotel also see and obtain reference books on hotel tax, reports the results of previous studies and scientific papers .These results indicate that the potential for very large hotel tax receipts well above realization Taxes, effectiveness and contribution no hotel taxes low. The results of this study also shows that the potential is not being realized Taxes optimally and there are some things that need to be re- correction and should be addressed by the government of Sleman Regency . Keywords : Potential, Effectiveness, Contributions, hotel taxes and local revenue ( PAD ) .

The Impact of Video Gaming Terminals on Casinos and State and Local Tax Revenue

2020 ◽  
Vol 48 (5) ◽  
pp. 650-675
Author(s):  
Erin Hazel Phipps ◽  
Mark W. Nichols ◽  
Federico Guerrero
Keyword(s):  
Negative Impact ◽  
Ordinary Least Squares ◽  
Casino Gambling ◽  
Video Gaming ◽  
Tax Revenue ◽  
Causality Test ◽  
Vector Autoregressive ◽  
The Past ◽  
State And Local ◽  
The Impact

In 2012, Illinois passed legislation allowing video gaming terminals (VGTs) outside of casinos. This legislation was passed to increase tax revenues from gambling in a market that had seen decreases in revenues and admissions over the past 8 years. VGTs may substitute for casino gambling and have a negative impact on casino and tax revenue. Using ordinary least squares and vector autoregressive models, we find that casino slot revenues decrease by about 0.05 percent for each 1 percent increase in VGT revenues. Admissions decrease by about eleven people per VGT. A Granger causality test suggests causation is running from VGTs to admissions. Thus, there is substitution between VGTs and casino gambling but not so large as to reduce tax revenue. Overall tax revenue from gambling, both casino and VGT, has increased for Illinois. However, local communities where casinos are located have experienced declines in casino tax revenue that have exceeded the gains from VGT revenue.

Tax-to-GDP Ratio and the Relation of Tax Revenue with GDP: Nepalese Perspective

2020 ◽  
Vol 4 (1) ◽  
pp. 80-96
Author(s):  
Arjun Kumar Dahal
Keyword(s):  
Secondary Data ◽  
Tax Revenue ◽  
Exploratory Research ◽  
Vector Error Correction ◽  
Long Run ◽  
Integration Test ◽  
Ratio Condition ◽  
The Government ◽  
Integrated Or ◽  
High Degree

 This study aims to show the tax-to-GDP ratio condition and explore the relation of tax revenue with Nepal's GDP. It is based on the secondary data that is collected from various published sources. Descriptive and exploratory research designs are used to explore the relationship between tax revenue and GDP. Some statistical and econometric tools like mean, depression, correlation, Johnsen Co-integration Test, Vector Error Correction Model (VECM), serial correlation, heteroskedasticity test, and normality test are used. There is a high degree of the positive relationship between tax revenue and GDP of Nepal. The tax revenue and GDP are co-integrated, or they have a long-run association ship. The tax-to-GDP ratio of Nepal lies in the high rank among the various developing countries. So, tax to GDP ratio alone cannot ensure its economic growth. It is advised to the concerned authorities to increase the income to increase the tax revenue; otherwise, it increases the general public's dissatisfaction with the government.

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