scholarly journals Redistributive Impact of GST Tax Reform: Pakistan, 1990-2001

2005 ◽  
Vol 44 (4II) ◽  
pp. 841-862 ◽  
Author(s):  
Saadia Refaqat
Keyword(s):  
Developing Countries ◽  
Tax Reform ◽  
Value Added ◽  
Sales Tax ◽  
Tax Revenue ◽  
Consumption Tax ◽  
Lump Sum ◽  
Indirect Taxes ◽  
Flow Through ◽  
Significant Change

Pakistan has undergone a significant change in tax structure over the last fifteen years. However, this change is not apparent on the surface, as there has not been much change in the tax to GDP ratio over the last fifteen years. But if we look beyond the surface we can see changes, for example in (1990-91), indirect taxes contributed 82 percent of total tax revenue with Customs, Excise and Sales tax each contributing around 55, 28 and 18 percent respectively, while in (2001-02), indirect tax share within the total tax revenue fell slightly to 68 percent with Customs, Excises and Sales tax each now contributing around 18, 18 and 64 percent respectively. Thus, it may not be wrong to say that there has been a significant change in the tax mix in the span of less than ten years and this development is important from the perspective of efficiency, effectiveness and equity with which revenues have and will be raised. Although, Value Added Tax (VAT) is likely to be more efficient in raising revenue than both the ordinary Sales Tax and Trade Taxes that it has replaced see e.g. [Nellor (1987); Liam Ebrill (2001)], the same cannot be said as far as the fairness issue is concerned. This in no way implies that the trade taxes replaced by VAT were more fair. However in most developing countries they operate with strict import licensing schemes, binding quotas and foreign exchange restrictions that make them more a kin to lump sum tax. Therefore in most cases they have no flow through effect to the consumers [for example see Clarete (1986); Shah (1991)]. But in contrast to this VAT being a consumption tax has the capacity to directly affect each and every household. Thus equity becomes much more of a real concern and this concern is heightened given that governments of most of the developing countries lack the capacity to carry out significant redistribution.

GST - Sway On Small Scale Industries

2019 ◽  
Vol 118 (10) ◽  
pp. 365-372
Author(s):  
Jayanti.G ◽  
Dr. V.Selvam
Keyword(s):  
State Government ◽  
Tax Reform ◽  
Small Scale ◽  
Tax Revenue ◽  
Tax System ◽  
Goods And Services ◽  
Single Tax ◽  
The People ◽  
Indirect Taxes ◽  
The Government

India being a democratic and republic country, has witnessed the biggest indirect tax reform after much exploration, GST bill roll out on 1 April 2017.  The concept of this reform is for a unified country-wide tax reform system.  Enterprises particularly SMEs are caught in a state of instability.  Several taxes such s excise, service tax etc., have been subsumed with a single tax structure. it is the responsibilities of both centre and state government to shoulder the important responsibility to cater the needs of the people and the nation as a whole.  The main basis of income to the government is through levy of taxes.  To meet the so called socio-economic needs and economic growth, taxes are considered as a main source of revenue for the government.  As per Wikipedia “A tax is a mandatory financial charge or some other type of levy imposed upon tax payer by the government in order to fund various public expenditure”   it is said that tax payment is mandatory, failure to pay such taxes will be punishable under the law.   The Indian tax system is classified as direct and indirect tax.   The indirect taxes are levied on purchase, sale, and manufacture of goods and provision of service.  The indirect tax on goods and services increases its price, this can lead to inflationary trend.  Contribution of indirect taxes to total tax revenue is more than 50% in India, therefore, indirect tax is considered as a major source of tax revenue for the government, which in turn is one of source for GDP growth.  Though indirect tax is a major source of revenue, it had lot of hassles.  To overcome the major issues of indirect tax system the government of India subsumed most of the indirect tax which in turn gave birth to the concept called Goods and Service Tax.

scholarly journals Tax Revenue, Tax Reform and Government Expenditure: The Case of Nigerian Economy (1994 – 2017)

2020 ◽  
pp. 1-12
Author(s):  
Chinedu Jonathan Ndubuisi ◽  
Onyekachi Louis Ezeokwelume ◽  
Ruth Onyinyechi Maduka
Keyword(s):  
Income Tax ◽  
Tax Reform ◽  
Government Expenditure ◽  
Value Added ◽  
Series Data ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Tax Reforms ◽  
Level Of Significance ◽  
Excise Duties

The objective of this study is to empirically investigate the effect of tax revenue and years tax reforms on government expenditure in Nigerian. Tax revenue were explained using custom and excise duties, company income tax, value-added tax and tax reforms explained by the years in which reforms took place measured by dummy variables as proxies. In conducting this research, an annual time series data from central bank statistical bulletins and Federal Inland revenue Service of Nigeria spanning from 1994-2017 were employed. The data were tested for stationarity using the Augmented Dicker-Fuller Unit Root Test and found stationary at first difference. The Johansen co-integration test was also conducted and showed that the variables are co-integrated at the 5% level, which implied that there is a long-run relationship between the variables in the model. The presence of co-integration spurred the use of vector error correction model and VEC granger causality to determine the effects and decision for the study objective. Findings revealed that Customs and Excise Duties has positive (3.96) and significant (-8.38) impact on government expenditure at 5% level of significance (t=8.38>1.96), Company Income Tax has negative (-1.25) and significant (2.98) impact on government expenditure at 5% level of significance (t=2.98>1.96), Value added tax has positive (8.54) and significant (3.90) impact on government expenditure at 5% level of significance (t=3.90>1.96) and Tax reforms periods has negative(-3.52E+12) and significant (8.39) impact on government expenditure at 5% level of significance (t=8.39>1.96). The study thus concluded that tax revenue and tax reforms significantly affect the Nigerian economy with the direction of causation running from government revenue to government expenditure, supporting the revenue-spend or tax-spend hypothesis.  It was recommended while seeking to increase its revenue base via tax should also increase their expenditure profile to create a balance with the tax revenue and every other tax reform should be geared towards this balance.

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 Impact of Lithuanian tax reform to companies results

2014 ◽  
pp. 162-177
Author(s):  
Jovita Kalantaitė ◽  
Rasa Subačienė
Keyword(s):  
Income Tax ◽  
Social Insurance ◽  
Tax Reform ◽  
Shadow Economy ◽  
Value Added ◽  
Corporate Income Tax ◽  
Tax Revenue ◽  
Personal Income Tax ◽  
Excise Tax ◽  
National Budget

Global economic crisis reached Lithuania in 2008, as a response to ongoing economic downturn, the government of the Republic of Lithuania introduced tax reform. Analysis of factors determined by the tax reform will be presented in the article. However, main arguments will concentrate on evaluation of companies activities and results as business is one of the key pillars on which Lithuanian economy is built on: taxes form a significant part of individual company’s expenses and on the other side – taxes are a main stream of revenue for the national budget. The most significant taxes in overall national budget composition could be named as the following: personal income tax, social insurance taxes, value added tax, corporate income tax, excise tax and others. In relation to the global crisis tax income has decreased significantly in year 2009 and at the end of year 2012 has still not reached the level of year 2008. However, from the company’s perspective, employees related taxes are considered as most significant as they form almost a half of total taxes paid by companies. Decrease of taxes related to payroll (personal income tax, social insurance taxes) was followed by growth of unemployment, decrease on average salary and growth of the shadow economy. Drop in GDP, inflation and decline in sales made impact on decrease of tax revenue of value added tax, as shadow economy and reduced consumption of excisable goods influenced the value of excise tax revenue. The tax revenue of corporate income tax was influenced by decline of net profit and profitability, increased number of bankruptcy.

Trade openness, tax reform and tax revenue in developing countries

World Economy ◽  
2019 ◽  
Vol 42 (12) ◽  
pp. 3515-3536 ◽  
Author(s):  
Sèna Kimm Gnangnon ◽  
Jean‐François Brun
Keyword(s):  
Developing Countries ◽  
Tax Reform ◽  
Trade Openness ◽  
Tax Revenue

Effect of Development Aid on Tax Reform in Recipient-Countries: Does Trade Openness Matter?

2020 ◽  
Vol 11 (01) ◽  
pp. 2050001 ◽  
Author(s):  
Sena Kimm Gnangnon
Keyword(s):  
Developing Countries ◽  
International Trade ◽  
Tax Reform ◽  
Trade Openness ◽  
Development Aid ◽  
Tax Revenue ◽  
Tax Structure ◽  
Empirical Results ◽  
Positive Effect

Based on a proposed measure of tax reform in developing countries, this paper examines both how tax reform is influenced by development aid flows, and whether this effect depends on countries’ degree of openness to international trade. Tax reform involves here the change of the tax structure in favor of domestic tax revenue and at the expense of trade tax revenue. Empirical results based on 102 developing countries over the period 1980–2015 suggest that development aid exerts a positive effect on tax reform in developing countries, with relatively less advanced countries enjoying a higher positive effect than advanced developing countries. Additionally, recipient-countries’ degree of trade openness matters for the effect of development aid on tax reform.

ESTIMASI ELASTISITAS DAN BUOYANCY PAJAK PERTAMBAHAN NILAI (PPN) DI INDONESIA

INFO ARTHA ◽  
2017 ◽  
Vol 3 ◽  
pp. 170-191
Author(s):  
NFN Nurhidayati
Keyword(s):  
Value Added ◽  
Sales Tax ◽  
Tax Revenue ◽  
Public Expenditures ◽  
Tax Rates ◽  
Tax Base ◽  
Luxury Goods ◽  
State Revenue ◽  
The Government ◽  
Is Value

Tax revenue is the most important source of state revenue nowadays. One of the largest sources of tax revenue is Value Added Tax (VAT) and Sales Tax on Luxury Goods. Tax buoyancy and elasticity is a common measure employed to estimate tax revenue productivity. Concept of elasticity is used to determine the level of responsiveness of automatic (built-in) of tax revenue to the tax base. While the concept of buoyancy is useful to know responsiveness of tax revenue, both to the tax base and to changes in policy. By using the Divisia index during 1984 to 2012, this research specifies that the coefficients of buoyancy and elasticity are 0.99 and 0.82 respectively. It shows that the PPN / PPnBM (VAT and Sales Tax on Luxury Goods) relatively unitary buoyant, but less elastic to the tax base. While using the basis of sectoral GDP from 2005 to 2012, VAT revenues also inelastic with respect to the development of the tax base with a coefficient of 0.632 and a buoyant relative to GDP overall with a coefficient of 1.076. Inelastic tax system forces governments to continuously make discretionary changes, either in the tax bases or in the tax rates or both, in order to be able to keep up with increasing public expenditures. Moreover, the point elasticity indicates that manufacturing and mining sectors are fluctuating as the VAT key sector and the trade sector are relatively stable and buoyant. Therefore, the government needs to review the policies of both the base and the VAT structure, in particular for the manufacturing and the mining sector. 

Buoyancy Estimates of Malaysia's Tax System 1961 – 1998

2020 ◽  
Author(s):  
Jeyapalan Kasipillai ◽  
Muszafarshah Mohd. Mustafa
Keyword(s):  
Income Growth ◽  
Tax Revenue ◽  
Tax Law ◽  
Tax Administration ◽  
Consumption Tax ◽  
Tax System ◽  
Change Over Time ◽  
Indirect Taxes ◽  
Over Time

Several criteria are used to determine a 'good tax system' and they include administrative feasibility, ensuring burden of tax is spread fairly among taxpayers and tax buoyancy. Tax buoyancy measures the responsiveness of tax revenue to income growth. Previous studies have assumed a constant buoyancy estimate for the period under study and hence applied a double-log tax model (Mansfield, 1972; Choudhry, 1975; Byrne, 1983). In practice, however, tax buoyancies may change over time due to inflation, changing tax bases, improved tax administration and stricter enforcement of tax law by revenue authorities.   This study uses the Box-Cox tax model which allows the determination of inter-temporal tax buoyancies for the period 1961-1998. The results obtained revealed a steady decline in buoyancy estimates of less than one for both direct and indirect taxes implying inefficiencies in the tax system. Suggestions are made to revamp the current tax system by integrating existing indirect taxes such as sales and service tax into a single broad-based consumption tax.

Problem of expanding the management of VAT to the synthetic tax centers of DR Congo

2021 ◽  
Vol 2021 (1) ◽  
pp. 244-260
Author(s):  
Luc Mwenelwata Butindi
Keyword(s):  
Direct Contact ◽  
Tax Reform ◽  
Value Added ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Dr Congo ◽  
Tax Base ◽  
State Revenue ◽  
Tax Legislation ◽  
Resource Mobilisation

The tax reform to replace turnover tax with value-added tax (VAT) in Congolese tax legislation, in order to broaden the tax base, was justified by the government’s desire to increase levels of state revenue. This tax was introduced in 2010 and implemented in 2012. Although its contribution has improved the level of tax revenue, certain managerial aspects linked to it have not been exploited to significantly improve resource mobilisation objectives. In particular, the fixed threshold has excluded certain structures, the synthetic tax centres in particular, who are in direct contact with the vast majority of consumers, from the management of this tax.

Is exit tax a good idea for the taxman?

2018 ◽  
Vol 45 (4) ◽  
pp. 810-828
Author(s):  
Darong Dai
Keyword(s):  
Capital Accumulation ◽  
Design Methodology ◽  
Empirical Studies ◽  
Income Taxes ◽  
Sales Tax ◽  
Tax Revenue ◽  
Labor Income ◽  
Capital Income ◽  
Content Type ◽  
Lump Sum

Purpose The purpose of this paper is to study whether it is a rational choice for a tax authority to impose an exit tax on capitalists. Design/methodology/approach The tax authority chooses a lump-sum exit tax to maximize a weighted objective of expected tax revenue and expected tax horizon. The tax revene consists of capital income taxes and exit taxes. Capitalists are motivated by sustainable capital accumulation and hence maximize the terminal capital stock. Findings The author finds that the objective function of the tax authority is strictly increasing in the exit tax, which holds for extensions with sales tax, labor income tax or proportional exit tax, and hence equilibrium exit tax is equal to an exogenous upper bound. Originality/value To the author’s knowledge, no existing literature investigates this issue theoretically, and hence the current paper represents the first attempt. The author hopes this theoretical analysis can trigger related empirical studies.

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