scholarly journals Progressive Taxation versus Progressive Targeted Transfers in the Design of a Sustainable Value Added Tax System

2021 ◽  
Vol 13 (20) ◽  
pp. 11165
Author(s):  
Zhila Abshari ◽  
Glenn P. Jenkins ◽  
Chun-Yan Kuo ◽  
Mostafa Shahee
Keyword(s):  
Value Added ◽  
Value Added Tax ◽  
Transfer Scheme ◽  
Tax System ◽  
Personnel Costs ◽  
Goods And Services ◽  
Poor Households ◽  
The Government ◽  
The Impact ◽  
Over Time

Value added tax (VAT) has proven to be the most stable and revenue productive of all components of the tax system. However, for such a tax system to be policy sustainable over time, taxpayers must consider it fair, and it must be viewed by the National Treasury to be productive in terms of raising substantial revenue and administratively feasible by the VAT-implementing agency. The VAT system in Belize has been a highly productive component of the revenue system, and it was designed to be progressive, but in arriving at this position, over 40% of the personnel of VAT tax administration are engaged in processing tax refunds to promote progressivity and to fight against the fraud that such a refund system incubates. This is an unsustainable position for any tax system to remain intact over time. This paper evaluates the attempt by the government of Belize to introduce progressivity into their single-rate VAT through zero rating and exemption from taxation of many goods and services that are major expenditure items of poor households. The distributional impacts are measured by a tax reform that eliminates all zero ratings except for exports and a few exemptions. By eliminating zero-rated items and significantly reducing the number of exempt items, the impact of the reform adds a regressive element, although overall, the VAT system remains progressive. However, 75% of the revenues raised by this reform would be paid by the top 40% of the income distribution. The increased revenues could finance an expansion of an existing transfer scheme that exclusively targets poor households. In addition, reforms would eliminate at least 40% of the personnel costs of administering the current VAT system.

scholarly journals Impact of Implementation of Goods and Service Tax on Indian Banking Sector

2018 ◽  
pp. 18-32
Author(s):  
Revathi R. ◽  
Madhushree ◽  
P. S. Aithal
Keyword(s):  
Economic Growth ◽  
Banking Sector ◽  
Value Added ◽  
Tax System ◽  
Tax Rate ◽  
Bank Branches ◽  
Goods And Services ◽  
The Government ◽  
One Year ◽  
The Impact

The banking sector is one of the biggest and revenue generating sector in our economy. Indiais a country with impressively splendid banks with sufficient capital and well-regulated rulesand regulations. One of the biggest transformations that the sector faced during this period isGST i.e., Goods and Service Tax, a new tax regime introduced in the midnight of 1 July2017. Now the new tax regime has become one year old and there are so many changeswhich happened in the banking sector during this one-year periods. Introduction of GST tothe banking sector was one the highly risky and challenging role for the government. GST isa replacement to the Value Added Tax (VAT) which was implied on goods and services. Themain purpose of studying the impact of implementation of GST is to avoid double taxationon goods and services. It is a self-regulated tax system with a simplifies tax regime whichreduces the multiplicity of tax. The purpose of this study is to know the challenges faced bythe Banking sector and its effects on the customers after the implementation of the GST.New tax regime made an incredible step by the abolish of centralized registration of thebanks. Now all the bank branches have to register under GST in each state for the smoothfunctioning. The tax rate has created an impression in the banking sector that the sector iscontributing much toward the economic growth of the country. Tax slabs is anotherimportant and critical thing discussed in this paper which has substantially increasedcompared to the old tax regime. Data for the study have been collected from secondary datasources such as journals, internet, and news articles. Using the ABCD qualitative analysistechnique, advantages, benefits, constraints, and disadvantages for both banks and thecustomers for payment of GST are identified.

scholarly journals Value Added Tax & Export: the Case of Selected Countries around the World

2011 ◽  
Vol 2 (6) ◽  
pp. 298-305
Author(s):  
Ahmad Jafari Samimi
Keyword(s):  
Value Added ◽  
Statistical Test ◽  
Annual Growth ◽  
Value Added Tax ◽  
Tax System ◽  
Goods And Services ◽  
The World ◽  
Before And After ◽  
The Impact ◽  
Do So

The purpose of the present paper is to compare the impact of implementing Value Added Tax on Export of goods and services in selected countries. In this paper, we used four different indices for export; export of goods and services, export of goods and services (BOP), export of goods and services (annual % growth), export of goods and services (% of GDP) to investigate the sensitivity to different definitions .To do so, study concentrated on a sample of 140 countries that have applied Value Added Tax in their tax system from 1990 to 2008. Findings of the study based on Mean Difference Statistical Test in a two threeyear periods before and after introduction of VAT. In general, the results show that, in different indices, the impact of VAT on export is positive. Therefore, it is suggested that other countries have not yet introduced the VAT to reform their tax system by introducing the VAT.

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 An Insight Into the Value Added Tax System Detailing Its Origins, Impact, Provisions and Regulations With Reference to India

2004 ◽  
Vol 3 (1) ◽  
pp. 19-29
Author(s):  
Tomy Kallarackal
Keyword(s):  
European Economic Community ◽  
Value Added ◽  
Tax Credit ◽  
Value Added Tax ◽  
Excise Duty ◽  
Goods And Services ◽  
The World ◽  
The Difference ◽  
The Government ◽  
Insight Into

The Value Added Tax was first introduced in France in 1954. It was the resultant effort of France and members of the European Economic Community (E.E.C) during the 1950s aimed at the simplification of commodity taxes. Currently more than 130 nations in the world have adopted the VAT system. In the last decade alone over 50 nations have introduced VAT. This includes implementation in China and most recently the addition of Australia to the list of VAT nations. The world over, VAT is payable on both goods and services as they constitute a part of the national GDR Excise duty and sales taxes are merged into the singularity of VAT. No tax is levied on exports with full input tax credit made available. The scheme of taxation adopted by most nations is very simple. The seller of goods and the service provider charge tax on sales, avail input tax credit and pay the difference as VAT to the goVernment treasury. The compliance system in VAT nations is also very simple. There is very less interface between the tax collector and the tax payer. However there are provisions for heavy penalization of VAT defaulters. VAT is administered nationally and is also levied on imports.  

scholarly journals Effect of Corporate Tax on Government Expenditure in Nigeria

2021 ◽  
Vol 1 (5) ◽  
pp. 157-171
Author(s):  
Patrick Ologbenla
Keyword(s):  
Income Tax ◽  
Consumer Price Index ◽  
Government Expenditure ◽  
Value Added ◽  
Corporate Income Tax ◽  
Value Added Tax ◽  
Independent Variable ◽  
The Government ◽  
The Impact ◽  
Bound Test

The study investigated the impact of corporate income tax on the government expenditure in Nigeria. Data on corporate income tax, value added tax, interest rate, gross domestic product, petroleum profit tax and consumer price index were collected and used as independent variable in the study while data on public expenditure were collected and used as independent variable in the estimated model. The ARDL bound test was applied and the result showed that corporate income tax have long run relationship that is significant with government expenditure. Other forms of tax such as value added tax and petroleum profit tax also have significant impact on government expenditure. The study concluded that corporate income tax should be sustained in order to ensure that government continue to fulfill her obligation of provision of social amenities that will promote the economic growth of the country.

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.

scholarly journals Pros and cons of gst

2017 ◽  
Vol 7 (2) ◽  
pp. 208-213
Author(s):  
ARULRAJ S ◽  
KADIRVELU S
Keyword(s):  
State Government ◽  
Central Government ◽  
Value Added ◽  
Goods And Services ◽  
Pros And Cons ◽  
Service Sectors ◽  
The Government ◽  
The Impact

India is currently going through major reforms in its overall economic sectors.GST is one such kind of great reform. GST is unified indirect tax across the country on the Goods and Services. In the earlier system of Indirect Tax, the tax is levied at each stage separately by the Central Government and State Government at different rates, on the full value of goods as well as the services. But in this GST system, tax will be levied only the value added at each stage. So the government states that this GST is ―one India one Tax‖.This paper focuses on the concept, the benefits which the country will accrue from GST, the impact of GST on manufacturing, entertainment and Service Sectors.

India's GST reform promises major economic rewards

2016 ◽  
Keyword(s):  
Monetary Policy ◽  
Supply Chains ◽  
The Political ◽  
Tax System ◽  
Content Type ◽  
Goods And Services ◽  
Economic Significance ◽  
National Market ◽  
The Government ◽  
Over Time

Subject The political and economic significance of GST. Significance The Goods and Services Tax (GST) bill earlier this month passed through the upper house of parliament, its most difficult hurdle. When rolled out, GST will represent the most significant reform of the tax system since India's independence in 1947, replacing the current myriad of central and state imposts to create a unified national market. The government claims that the GST will be the best version of its envisaged 'One Nation One Tax' concept. Impacts GST has longer-term implications for business costs, taxation ratios and India's illicit economy. Over time, businesses are likely to re-adjust their supply-chains to take advantage of the new opportunities. Inflation may rise temporarily when GST is implemented, possibly affecting political sentiment and monetary policy. Sectors such as renewables, tourism and telecommunications are likely to lobby the government for exemptions. The April 2017 deadline for rolling out GST is ambitious.

The Impact of Gst On The Spending Pattern Of Students From The Faculty Of Accountancy, UiTM Puncak Alam, Selangor

2016 ◽  
Vol 2 (1) ◽  
pp. 14
Author(s):  
Nadiah Abd Hamid ◽  
Nurul Mardhiah Harun ◽  
Bedah Ahmad ◽  
Mastora Yahya
Keyword(s):  
End Users ◽  
Tax System ◽  
Tax Rate ◽  
Income Levels ◽  
Goods And Services ◽  
Revenue Collection ◽  
The Government ◽  
The Impact

The implementation of GST in Malaysia as of 1st April 2015, which replaced the current Sales and Service Tax (SST) is viewed as a more efficient tax to manage and to generate greater revenue collection for the government. This multi-tiered tax rate of 6 percent is finally borne by the end users who consumed the goods and services regardless of their income levels. As a result, even non-income earners such as students are inevitably bearing the rising price of their consumed goods and services. This study aimed to investigate the level of GST knowledge among the final year students in the Faculty of Accountancy, UiTM Puncak Alam. The students’ knowledge andperception on issues related to GST implementation were found to have certain impacts on their spending pattern. Evidently, the findings revealed that students who have much information about GST implementation and in cases where they perceived that GST is an unfair and unequitable tax system, both situations are highly likely to have significant effects on their spending trend.

The Impact of Consolidated Value Added Taxation on Innovation and Investment Processes: European Experience and Prospects for Ukraine

2021 ◽  
Vol 17 ◽  
pp. 321-331
Author(s):  
Viktoriia Rudenko ◽  
Ruslan Voloshchuk ◽  
Viktor Melnyk ◽  
Oksana Tsiupa
Keyword(s):  
Quantitative Methods ◽  
Value Added ◽  
The State ◽  
European Countries ◽  
Value Added Tax ◽  
Tax System ◽  
Advantages And Disadvantages ◽  
European Experience ◽  
The Cost ◽  
The Impact

Today Ukraine is on the path to European integration, which requires the introduction of the best practices of European countries, including in terms of taxation of consolidated groups of enterprises. At present, in European countries, consolidated value added taxation is one of the ways to solve the problem of reducing the tax burden on business, providing enterprises with additional investment resources and stimulating their innovative development. In addition, the consolidated tax system reduces the cost of tax administration for both the state and business. Therefore, the issue of introducing value added tax is relevant for Ukrainian practice. The purpose of the research is to study the content and determine the specifics of consolidated value added taxation in European countries and to consider the possibilities of its application in Ukraine for innovation and investment processes intensifying. The specifics of the scientific tasks that are the subject of the study required the use of a set of special methods, the application of which helped to analyze the impact of consolidated value added taxation on innovation and investment processes in European countries. The study was conducted using quantitative methods, including comparative analysis, and qualitative methods, including case study. The study identified the essence and basic principles of consolidated value added taxation. Two types of consolidated VAT taxation in European countries are analyzed: the regime of full consolidation and the regime of partial consolidation. The advantages and disadvantages of consolidated VAT taxation for the state and taxpayers are substantiated. It was found out that in European countries, consolidated value added tax is aimed at improving the conditions of doing business and providing taxpayers with additional opportunities to apply special tax rules. As a result of the study, it was proved that the introduction of approaches in Ukraine that correspond to the European experience of consolidated VAT taxation will help to solve important tasks of bringing its tax system closer to foreign standards and intensifying innovation and investment processes at the micro- and macro levels.

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