scholarly journals Effect of the change in value added tax on the fiscal stability of Kosovo

2018 ◽  
Vol 69 (4) ◽  
pp. 423-438 ◽  
Author(s):  
Gani Asllani ◽  
Bedri Statovci
Keyword(s):  
Econometric Model ◽  
Linear Regression Analysis ◽  
Value Added ◽  
The State ◽  
Tax Rates ◽  
Negative Effects ◽  
State Budget ◽  
Tax Rate ◽  
Secondary Sources ◽  
The Impact

The main goal of this paper is to analyse the effect of the change in tax rates for VAT for certain categories of goods on the fiscal stability of Kosovo. In Kosovo, VAT has been applied since 2001 and is an indirect tax on consumption that is the principal source of revenue to the state budget. The importance of this research paper is its focus on whether the changes made to the VAT rates in September 2015 have had positive or negative effects on some product prices, increasing or decreasing the state budget and the impact on the development of economic indicators expressed through GDP. The methodology of the paper is based on the comparative analysis of the data using both primary and secondary sources. The econometric model includes two variables and their relationships, independent variables, such as VAT, and dependent variables, like GDP. Through the econometric model and linear regression analysis for the period 2013-2016, the hypotheses have been tested with STATA application/software to calculate the impact of changes in the tax rate for VAT on the budget, economic growth and economic development. The results of the analysis show that the VAT reduction from 16% to 8% for basic products and the increase in VAT from 16% to 18% on luxury products had a positive effect on budget revenues and growth of GDP of Kosovo.

scholarly journals Estimating the fiscal and regulatory role of value added tax

2020 ◽  
Vol 67 (6) ◽  
pp. 129-136
Author(s):  
Z. Lobodina ◽  
A. Kizyma ◽  
L. Marushchak
Keyword(s):  
Low Income ◽  
Local Governments ◽  
Value Added ◽  
The State ◽  
Value Added Tax ◽  
State Budget ◽  
Tax Rate ◽  
Fiscal Efficiency ◽  
The Impact

The impact of value added tax (hereinafter – VAT) on the socio-economic development of the state is investigated in this paper. Here it is considered as a tool of the mechanism of budgetary resources formation and regulation of taxpayers’ welfare and activities. It is determined that, in addition to the reduction of tax rate, the public authorities and local governments should provide favorable conditions for doing business, implement measures for anticorruption and market anti-monopoly. To compensate for the expences of budgetary resources occurring as a result of possible reduction in the value added tax rate, it is necessary to look for alternative sources of pumping up the state budget. Such situation could weaken Ukraine's competitiveness, increase distrust of potential investors, and deactivate attracting investments into the country's economy. In order to stimulate certain economic activities, to increase the volume or the level of availability of certain goods (services)consumption, the tax legislation provides certain preferences for value added tax, particularly – lowering the tax rate, tax exemptions, , tax credit, tax benefits. In addition, the regulatory impact of VAT as a financial instrument on the taxation system is revealed in this paper. The peculiarities of VAT administration in Ukraine and foreign countries are highlighted, the dynamics, tendencies of receipt and reimbursement of VAT in Ukraine are considered. The reasons for tax refund arrears are given and ways to improve VAT administration are proposed. Analysis of the assessment of VAT fiscal efficiency is carried out, the indicators of the assessment of this tax fiscal efficiency are determined. Despite the permanent increase in the absolute amount of this tax and its share in gross domestic product (hereinafter – GDP) and state budget revenues, the fiscal role of VAT is weakened due to such problems as regressive impact on low-income populations, tax evasion and minimization of tax liabilities, growth of volumes of VAT refunds at the expense of budgetary resource.

scholarly journals A QUANTITATIVE ANALY SIS OF THE MAIN LITHUANIAN TAXES AND THEIR OPTIMISATION DURING THE CRISIS

Ekonomika ◽  
2017 ◽  
Vol 95 (3) ◽  
pp. 98-111
Author(s):  
Miroslav Švabovič ◽  
Algirdas Miškinis
Keyword(s):  
Value Added ◽  
The State ◽  
Tax Rates ◽  
Maximum Probability ◽  
State Budget ◽  
Short And Long Term ◽  
Current Article ◽  
The Impact ◽  
Modelling System

Seeking to contribute to the analysis of anti-crisis economic policy decisions, the authors of the current article have developed an economic analysis modelling system of the main tax rates, which makes it possible to carry out research into modelling economic scenarios in order to determine the variables of optimal tax rates. By applying this modelling system in practice, it is possible to measure the maximum probability rates of Value Added, Profit, and Personal Income Taxes for the collection of necessary revenues to the state budget. This method presents a possibility to accurately evaluate the impact of fiscal policy measures on the state budget as well as to reflect economic processes more comprehensively and model accurate short- and long-term projections.

THE COMPARISON OF CORPORATE INCOME TAX IN LATVIA AND LITHUANIA

2017 ◽  
pp. 20
Author(s):  
Jūlija Ščeglova ◽  
Iveta Mietule
Keyword(s):  
Income Tax ◽  
The State ◽  
Corporate Income Tax ◽  
Tax Rates ◽  
State Budget ◽  
Tax Base ◽  
Tax Rate ◽  
Common Features ◽  
Advance Payment ◽  
Tax Payers

Corporate income tax is one of the important taxes that provide revenues to the state budget. Article contains a comparison between Latvian and Lithuanian existing legislation relating to corporate income tax, studied differences between the tax rates, tax base, tax period and taxpayers. Were described differences that are related to the advance payment calculation, as well as created an example that shows how advance payments are calculated in Latvian and Lithuanian companies. As a result, it was found that there are several common features in the Latvian and Lithuanian legislation, with regard to corporate income tax, for example, the tax payers, taxation period, tax rate, the taxable amount. But there are several differences, such as the nuances of rates for non-residents, depending on the type of revenue, advance payment deadlines and other particularities of the calculation of the advance payments. Also differ corporate income tax payment deadlines. It was concluded that making advance payments in Lithuanian enterprises is more profitable, because it was calculated that at the same conditions, the amount of advances in Lithuania is lower than in Latvia.

scholarly journals FOREIGN ECONOMIC ACTIVITY OF UKRAINE: FISCAL CONSEQUENCES

2021 ◽  
Vol 71 (3) ◽  
Author(s):  
Liudmyla Dermanska
Keyword(s):  
International Economic ◽  
Economic Activity ◽  
Current Model ◽  
Value Added ◽  
The State ◽  
State Budget ◽  
Excise Tax ◽  
Economic Relations ◽  
International Economic Relations ◽  
The Impact

The article considers the peculiarities of Ukraine's foreign economic activity in the development of international economic relations and identifies the impact of the taxation system on the import of goods into Ukraine on the fiscal consequences for domestic priorities. In particular, it is analyzed the share of VAT on imported goods in the structure of state budget revenues for 2016-December 2020, the dynamics of excise tax on goods imported into Ukraine and depending on the object of taxation in 2019, the volume and share of import duties in the structure revenues of the State budget. Particular attention is paid to issues related to the filling of the budget, namely, attention is focused on the structure of objects from which excise tax was paid on imports. In particular, the importance of such tools for regulating foreign economic activity as import duties is revealed, but its share in the structure of customs duties is not the most significant, and VAT charges significantly exceed revenues from customs duties on imports. It is emphasized that the priority task to overcome the existing contradictions in the field of foreign trade should be the introduction of an effective and adequate to the requirements of the time model of foreign economic activity. Because, as the results of a study of the activities of domestic enterprises - subjects of foreign economic activity show, the current model is outdated and inefficient and can not ensure the development of this area. The current state of affairs requires a number of sound management decisions backed by political will and economic expediency, and most importantly, not only in the field of fiscal policy. Therefore, the study of the peculiarities of Ukraine's foreign economic activity in the development of international economic relations and determining the impact of value added tax, excise tax and duties on fiscal consequences for domestic priorities allows us to determine that for a full-fledged solution of this range of issues requires a comprehensive approach and the formation of an appropriate strategy, the fundamental basis of which should be the concept of ensuring the fiscal interests of the state.

scholarly journals COSTS OF PROTECTION AT WORK IN ENTREPRENEURSHIP

2019 ◽  
Vol 34 (1) ◽  
pp. 195-199
Author(s):  
Miodrag Šmelcerović ◽  
Lyubcho Varamezov ◽  
Marina Grubor
Keyword(s):  
Occupational Safety ◽  
Occupational Injuries ◽  
National Level ◽  
Value Added ◽  
Indirect Costs ◽  
The State ◽  
State Budget ◽  
Tax Rate ◽  
Record Keeping ◽  
Safety And Health

Technologies in which working life is the basis of business, and research into losses due to absenteeism, are a complex social and individual problem. Surveys conducted at the level of Member States of the European Community show that these losses amount to about 4% of GDP (gross social income). Due to inadequate record keeping, it is not possible to calculate how much such damage is in Serbia, but according to the available parameters related to the number of injuries at work, the state of occupational safety in Serbia does not deviate significantly from the situation in Europe. Safer working conditions are of great interest to the state, since work incapacity directly affects the state budget. Thus, apart from repression, the state should share with the employers the costs of investing in occupational safety and health. By reducing the tax rate or introducing a zero value added tax (VAT), employers would be encouraged to invest in occupational safety and health.The costs of injuries at work are mainly borne by employers, but the damage incurred is also reflected at the national level. The costs of occupational injuries can be divided into direct and indirect costs.The paper presents an economic approach to a harmful event (injury at work) and points to itto certain direct and indirect costs in entrepreneurship.

The Value Of The State-Owned Enterprises In Indonesia: A Case Study Of Privatization

2011 ◽  
Vol 8 (7) ◽  
Author(s):  
Sri Hasnawati
Keyword(s):  
Ownership Structure ◽  
Stock Exchange ◽  
Economic Value ◽  
Value Added ◽  
Market Value ◽  
The State ◽  
State Budget ◽  
Market Value Added ◽  
The Impact

This research aims to test the impact of the ownership structure toward the performance of the State-Owned Enterprises (SOEs). It examines the relationship between the performance of the SOEs and the market value. The study involves 13 SOEs listed at the Jakarta Stock Exchange. Of the 13 SOEs, 9 were selected as samples. The performance of the SOEs is measured by means of the EVA (Economic Value Added) indicator and the market value by the MVA (Market Value Added) indicator. The result of the study reveals that the ownership structure does not have an impact on the performance of the SOEs, either partially or simultaneously. To a smaller degree, the study also indicates that there is a relationship between the EVA and the MVA. The implication of this study is that the privatization of the SOEs should not fully be used to help with the state budget deficit. That is, the majority of the funds should be allocated for the purpose of developing or expanding the SOEs themselves so that they can perform optimally for the sake of society. Furthermore, the SOEs should be well-managed if they would like to obtain good responses from the market.

scholarly journals Changes of Rules Applicable to Value Added Tax

2019 ◽  
pp. 265-274
Author(s):  
Katarzyna Kopyściańska
Keyword(s):  
Criminal Law ◽  
Value Added ◽  
The State ◽  
Tax Rates ◽  
State Budget ◽  
Tax System ◽  
Goods And Services ◽  
Legal Responses ◽  
Standard Term ◽  
Tax Loss

Every year the state budget loses several dozen billions of zlotys. What provides the measure of the extent of this loss is “the tax gap” (although in fact it is not a gap) which shows the level of discrepancies between theoretical receipts due to the state budget and receipts actually collected in its fiscal function.The paper therefore explores the analysis of selected changes which have been implemented and which are commonly referred to as “the tightening of the tax system”. This is the reaction to those behaviours within legal and commercial exchanges which could be classified as a misuse of the tax system. The paper collates the most important, in the author’s opinion, possible legal responses to exchange situations having as their consequence an impairment or threat to the financial interest of the state, including, in particular, the phenomenon for which the standard term in criminal law dogma is tax loss. In the paper, possible methods of countering tax losses in the tax system will be addressed, while identifying mechanisms which are relevant for the legal construction and specificities of the tax on goods and services. The existing legal regulations are not sufficient for preventing fiscal fraud; the structure of the tax itself and the rules on setting the tax rates are the source of the threats encountered, while the expectations placed upon the valued added tax by the EU and the Member States are not met.

scholarly journals IMPROVING TAX ADMINISTRATION OF VAT IN THE INTERESTS OF THE STATE AND TAXPAYERS

2018 ◽  
pp. 105-112
Author(s):  
Elena Valerievna Smirnova
Keyword(s):  
Central Bank ◽  
Value Added ◽  
The State ◽  
Tax Rates ◽  
Negative Consequences ◽  
State Budget ◽  
Tax Legislation ◽  
Tax Deductions ◽  
Expert Community

Despite the fact that the tax regulation of VAT has been improving since its introduction in Russia, disputes over its further reformation are still ongoing. In this regard, the paper describes an attempt to justify the need of reforming the method of VAT calculation and administration not only in the interests of the state, but also in the interests of the taxpayers, which requires thorough weighting of all the positive and negative consequences of the proposed changes in tax legislation. The analysis of the quality of administration and structure of VAT revenues to the state budget of Russia showed imperfection of the structure of the tax on relation to the value added tax calculated for payment to the budget and the amount of tax deductions. With this structure more than 93% of the VAT amounts are subject to reimbursement from the budget. In such proportions, the administration of VAP is not effective, despite the annual improvement in the quality of tax control. For the solution of the revealed problems, it has been offered to carry out inventory of tax privileges and exemptions on VAT for their further processing in respect to the contents and structure. Representatives of the expert community warn against risky options for raising VAT rates, which will cause fast growth of inflation in Russia and neutralize the activities of the Central Bank of Russia to reduce inflation. The possible variants of complex adjustment of tax rates of VAT and insurance contributions to extra-budgetary funds, which will not only increase the tax revenues of the budget, but also reduce the tax burden on the activities of economic entities, are considered.

WAYS TO IMPROVE THE MECHANISM FOR COLLECTING VALUE ADDED TAX

2021 ◽  
Vol 4 (1) ◽  
pp. 63-69
Author(s):  
Jonibek Urazmatov ◽  
Keyword(s):  
Value Added ◽  
Added Value ◽  
Intangible Asset ◽  
Tax Rates ◽  
Value Added Tax ◽  
State Budget ◽  
Tax Rate ◽  
Hidden Economy ◽  
Indirect Taxes ◽  
Business Entities

Today, based on the importance of the role of indirect taxes in the replenishment of the state budget, systematic measures are being taken to increase the number of business entities and increase the newly created added value. In this article, based on the analysis of tax rates of foreign countries, the issues of improving the mechanism of collecting value-added tax in Uzbekistan, increasing the competitiveness of the national economy with a lower tax rate are considered.Keywords: Value Added Tax, honest taxpayer, budget revenue, indirect taxes, principal instrument, intangible asset,hidden economy, production and reproduction, invoices.

Financial and monetary policy of the State and its impact on the income level and poverty reduction in Russia

2020 ◽  
Vol 26 (5) ◽  
pp. 964-990
Author(s):  
N.I. Kulikov ◽  
V.L. Parkhomenko ◽  
Akun Anna Stefani Rozi Mobio
Keyword(s):  
Monetary Policy ◽  
Household Income ◽  
Poverty Reduction ◽  
The State ◽  
Financial Policy ◽  
Gdp Growth ◽  
Tax Rate ◽  
Gdp Growth Rate ◽  
The Government ◽  
The Impact

Subject. We assess the impact of tight financial and monetary policy of the government of the Russian Federation and the Bank of Russia on the level of household income and poverty reduction in Russia. Objectives. The purpose of the study is to analyze the results of financial and monetary policy in Russia and determine why the situation with household income and poverty has not changed for the recent six years, and the GDP growth rate in Russia is significantly lagging behind the global average. Methods. The study employs methods of analysis of scientific and information base, and synthesis of obtained data. The methodology and theoretical framework draw upon works of domestic and foreign scientists on economic and financial support to economy and population’s income. Results. We offer measures for liberalization of the financial and monetary policy of the government and the Central Bank to ensure changes in the structure of the Russian economy. The proposed alternative economic and financial policy of the State will enable the growth of real incomes of the population, poverty reduction by half by 2024, and annual GDP growth up to 6 per cent. Conclusions. It is crucial to change budget priorities, increase the salaries of public employees, introduce a progressive tax rate for individuals; to reduce the key rate to the value of annual inflation and limit the bank margin. The country needs a phased program to increase the population's income, which will ensure consumer demand.

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