scholarly journals The effects of personal income tax reform on employees’ taxable income in Uganda

2021 ◽  
Author(s):  
Maria Jouste ◽  
Tina Kaidu ◽  
Joseph Okello Ayo ◽  
Jukka Pirttilä ◽  
Pia Rattenhuber
Keyword(s):  
Low Income ◽  
Income Tax ◽  
Tax Reform ◽  
Developed Countries ◽  
Personal Income ◽  
Personal Income Tax ◽  
Taxable Income ◽  
Elasticity Of Taxable Income ◽  
The Impact ◽  
Income Tax Reform

We evaluate a major personal income tax reform in Uganda that came into effect in 2012–13. The reform increased the tax-free lower threshold, increased tax rates for higher incomes, and introduced an additional highest tax band. Using the universe of pay-as-you-earn administrative data submitted by employers in the formal sector, we analyse the impact on taxable income of the introduction of the additional top tax band. Our results indicate that the elasticity of taxable income in Uganda is larger than in previous results from developed countries. Overall, the additional revenue generated from the introduction of the additional top tax band by far offset the revenues lost from the decreased revenues from employees with medium to lower taxable incomes, despite the large elasticity of taxable income at the top. We contribute to the very scarce literature on the effects of personal income tax reform on employees’ income in a low-income country in Africa.

scholarly journals Evaluation the impact of the personal income tax reform in the Czech Republic in 2021 on effective tax rate and tax progressivity

2021 ◽  
Vol 7 (2) ◽  
pp. 134-145
Author(s):  
M. Krajňák ◽  
Keyword(s):  
Income Tax ◽  
Tax Reform ◽  
Personal Income ◽  
Personal Income Tax ◽  
Effective Tax Rate ◽  
Tax Base ◽  
Tax Rate ◽  
Tax Progressivity ◽  
The Impact ◽  
Income Tax Reform

Legislation governing personal income taxation is often subject to changes. A significant personal income tax reform was carried out in the Czech Republic in 2021. The reform implements a progressive tax rate, changes the way the tax base is determined, and increases the tax relief for the taxpayer. The aim of the article is to evaluate the impact of the personal income tax reform on the effective tax rate and tax progressivity. To that end, methods of regression analysis have been used. The source of information for analysis was the data published by the Czech Statistical Office. It was found that in 2021, in comparison with 2020, the tax burden represented in this study by the effective tax rate, in all cases became lower, approximately by 5%. The main reason for this decline is the adjustment of the method of construction of the tax base, which, for the first time in the history of the Income Tax Act, is gross wages. Until the end of 2020, the tax base was a super-gross wage, or the gross wage increased by social security contribution borne by the employer at his costs. The second factor that reduces the tax burden is a CZK 3,000 increase in the deduction per taxpayer per year. This fact increases the degree of tax progressivity, as confirmed by the results of the progressivity analysis and the regression analysis. The changes that have taken place in the personal income tax this year have a positive impact on the taxpayer, but from the point of view of the state, this reform has reduced the state budget revenues.

scholarly journals Personal income tax reform in Latvia: assessment of effect

2019 ◽  
Author(s):  
Larisa Bule ◽  
Līga Leitāne ◽  
Kristīne Rozīte
Keyword(s):  
Income Tax ◽  
Social Insurance ◽  
Personal Income ◽  
Tax Rates ◽  
Personal Income Tax ◽  
State Revenue ◽  
Normative Concepts ◽  
The Impact ◽  
Practical Implications ◽  
Income Tax Reform

Personal income tax (PIT) policy in Latvia has been changed significantly in 2018 with the aim to reduce the tax burden and increase the income of working population by amending progressive tax rates and increasing the non-taxable minimum and minimum wage. Purpose − the aim of this study is to estimate the impact of PIT reform by assessing the effect of implementation of non-taxable minimum, deductions and substantiated spending on the dynamics of income and tax administration efficiency. Research methodology − PIT theoretic and normative concepts have been analyzed; unpublished data on actual wages in 2015−2018 provided by Latvian State Revenue Service and State Social Insurance Agency have been estimated. Findings − the main conclusion of this study is that the aim of the reform has not been achieved: income inequality hasn’t been reduced, an increase of income has been irrelevant, the gains from the reform have become unobtainable for the most unprotected groups because of the insufficient level of income. The implementation of the differentiated non-taxable minimum has generated PIT debts and higher administrative burden. Practical implications − the study may be implemented in case of progressive PIT for the reassessment of the tax framework and its future development. Originality/Value − this study is original, the actual effect of PIT reform in Latvia previously hasn’t been analyzed.

Taxpayer Response to Greater Progressivity: Evidence from Personal Income Tax Reform in Uganda

2022 ◽  
Author(s):  
Maria Jouste ◽  
Tina Kaidu ◽  
Joseph Okello ◽  
Jukka Pirttilä ◽  
Pia Rattenhuber
Keyword(s):  
Income Tax ◽  
Tax Reform ◽  
Personal Income ◽  
Personal Income Tax ◽  
Income Tax Reform
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