scholarly journals Evaluating the impact of value added tax on the economic growth of Nigeria

2016 ◽  
Vol 8 (6) ◽  
pp. 59-65 ◽  
Author(s):  
Mukhtar Gatawa Nasiru ◽  
Mohammed Aliero Haruna ◽  
Muhammad Aishatu Abdullahi
Keyword(s):  
Economic Growth ◽  
Value Added ◽  
Value Added Tax ◽  
The Impact

scholarly journals THE IMPACT OF STANDARD VALUE ADDED TAX ON ECONOMIC GROWTH IN CEE-5 COUNTRIES: ECONOMETRIC ANALYSIS AND SIMULATIONS

2016 ◽  
Vol 22 (6) ◽  
pp. 850-866 ◽  
Author(s):  
Mihaela SIMIONESCU ◽  
Lucian-Liviu ALBU
Keyword(s):  
Economic Growth ◽  
Linear Models ◽  
Random Effect ◽  
Random Effect Model ◽  
Value Added ◽  
Positive Influence ◽  
Value Added Tax ◽  
Short Run ◽  
The Impact ◽  
Panel Vector Autoregression

The value added tax (VAT), as an instrument of fiscal policy, might have an important role on economic growth. This study analyzes the impact of standard VAT rate on economic growth in five Central and Eastern European countries (CEE-5) (Bulgaria, Czech Republic, Hungary, Poland and Romania). Different types of panel data models (random effect model, dynamic panel and panel vector-autoregression) over 1995–2015 indicated a positive influence of VAT rate on economic growth. There is a bilateral Granger causality between economic growth and VAT rate. The Bayesian linear models indicate a positive effect of VAT rate on GDP rate only for Hungary. On short-run, the other countries register lower GDP rates when VAT rates increase. Some simulations of economic growth for 2016 and 2018 were made for each CEE-5 country under different assumptions regarding VAT rate values.

scholarly journals Indirect Tax and Economic Growth in Nigeria: The Case of VAT

2019 ◽  
pp. 61-66
Author(s):  
OBAYORI, Joseph Bidemi ◽  
OMEKWE, Sunday Omiekuma Paul
Keyword(s):  
Economic Growth ◽  
Tax Evasion ◽  
Unit Root Test ◽  
Value Added ◽  
Secondary Data ◽  
Value Added Tax ◽  
Long Run ◽  
Integration Test ◽  
The Impact ◽  
Excise Duties

This paper empirically investigated the impact of value added tax (VAT) on economic growth in Nigeria from 1994–2018. This was done against the background that VAT as an indirect tax was introduced by the Federal Government of Nigeria in 1993 to replace sales tax with the sole aim of increasing the revenue base of government and make funds available for developmental purposes. The aim of the study is to examine the effect of value added tax on economic growth in Nigeria and determine the impact of other tax revenues particularly, custom and excise duties on economic growth in Nigeria. Thus, secondary data on GDP, VAT revenues, custom and excise duties were sourced from CBN statistical bulletin. Also, ARDL technique was used to analyze data. The variables were subjected to ADF unit root test prior the ARDL and found to be stationary. The ARDL co-integration test showed that there is a long run association amongst the variables. The ARDL short run result showed that the value of VAT has a positive relationship with economic growth in Nigeria. Also, custom and excise duties revenue positively impacted on economic growth in Nigeria. Hence, it was concluded that Value Added Tax (VAT) as an indirect tax system in Nigeria has direct relationship with economic growth in Nigeria since its inception in 1994. It has contributed to the total revenue of the nation as a result of reduction in tax evasion. Based on the findings, the paper recommended that government should put in place adequate measure to ensure that revenue generated from VAT is effectively utilized to develop and grow the economy in order to better the lives of the citizenry.

scholarly journals Does the Vision 2030 and Value Added Tax Leads to Sustainable Economic Growth: The Case of Saudi Arabia?

2021 ◽  
Vol 13 (19) ◽  
pp. 11090
Author(s):  
Suleman Sarwar ◽  
Dalia Streimikiene ◽  
Rida Waheed ◽  
Ashwag Dignah ◽  
Asta Mikalauskiene
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Financial Development ◽  
Trade Openness ◽  
Value Added ◽  
Economic Transformation ◽  
Policy Implications ◽  
Value Added Tax ◽  
Vision 2030 ◽  
The Impact

The motivation behind the current research is to check the effect of the recent introduction of value added tax (VAT) and Vision 2030 on the economy of Saudi Arabia. To check this, those variables are added to the analysis which contribute to economic development including labor, capital, oil price, financial development, and trade openness to examine that how economic transformation affects the role of these variables in economic growth. According to the vector error correction (VEC) model, the impact of labor becomes negative after VAT, however, the impact of capital and financial development becomes significant by this transformation. The coefficients of oil prices, for positive and negative shocks, are significant and negative. Financial development and trade openness are reporting surprising results; positive shocks have shown negative coefficients. However, after Vision 2030, trade openness has a significant and positive coefficient. Policy implications include diversification of exports, reviving the private financing mechanism and restructuring the export/import policies.

scholarly journals Factors of the Value Added Tax Collection Efficiency in the Republic of Serbia

2019 ◽  
Vol 57 (1) ◽  
pp. 35-49
Author(s):  
Milica Ristić ◽  
Jadranka Đurović Todorović ◽  
Marina Đorđević
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Developing Countries ◽  
Collection Efficiency ◽  
Value Added ◽  
Strong Positive Correlation ◽  
Value Added Tax ◽  
Economic Growth Rate ◽  
Standard Rate ◽  
The Impact

AbstractThe policy led by a large number of developing countries, with the aim of increasing indirect taxes, has opened the issue of Value Added Tax (VAT) performance. Reforms of tax systems of transition countries generally involve an increase in standard rates in order to increase VAT, which is the main source of public revenues. In such a way, developing countries determine the VAT performance and the amount of revenue that could be collected by indirect taxation. Theoretical analyses of standard rates and other factors that have reflections on the VAT collection efficiency explicitly prove that there are different ways to improve the efficiency of VAT collection, and exclude an increase in the standard rate. An increase in the standard rate provides a balance of negative effects, which can be blurred by recorded tax revenues. The subject of this paper is an analysis of the factors that influence the efficiency of VAT collection in Serbia. The main objective of the paper is to examine the impact of the change in the standard rate, which is the result of the reforms carried out in 2012, on the performance of VAT. Regression analysis was applied to the data series for the period 2005-2016.The results show that the change in the standard rate had a statistically significant negative impact on VAT performance. Our analysis also indicates that the economic growth rate has reflections on VAT collection. A strong positive correlation between the economic growth rate and VAT performance was calculated.

Necessary Adjustments in Economic Policy

2019 ◽  
Vol 8 (1) ◽  
pp. 46-52
Author(s):  
М. Сидоров ◽  
M. Sidorov ◽  
В. Гарнова ◽  
V. Garnova
Keyword(s):  
Economic Growth ◽  
Economic Policy ◽  
Value Added ◽  
Value Added Tax ◽  
Relationship Of ◽  
The Impact ◽  
The Relationship

The factors of economic growth are considered, the indicators of export-import in the industry are analyzed, the impact of value added tax on the growth of production is estimated, the relationship of budget indicators for 2019–2021 with the development of entrepreneurship in the country is determined.

scholarly journals The impact of fiscal policies on Albanian economic growth: The case of value-added tax

2021 ◽  
Vol 10 (4, special issue) ◽  
pp. 311-325
Author(s):  
Albana Demi ◽  
Shqipe Xhaferri ◽  
Skënder Uku ◽  
Shpend Shahini ◽  
Alfons Lushi
Keyword(s):  
Economic Growth ◽  
Explanatory Variable ◽  
Value Added ◽  
Statistical Information ◽  
Public Institutions ◽  
Fiscal Policies ◽  
Value Added Tax ◽  
Testing Hypotheses ◽  
Wide Range ◽  
The Impact

This paper aims to give an overview and examine the effects of value-added tax (VAT) income as one of the main elements of fiscal policies on Albanian economic growth GDP (Demi, Hysa, & Nanaj, 2018), for the period 1999–2019, considering also the implementation of VAT legislation rules. The quantitative analysis methods are used in this study based on the wide range of theoretical and practical cases obtained from the literature to figure out the existing link between VAT as the explanatory variable and GDP as the explained variable. Based on empirical testing hypotheses on the importance of econometric models, the statistical information was selected by public institutions in Albania and the data is in the form of time series, often self-correlated from period to period. This feature was considered to avoid the consequences caused by autocorrelation and following the detection, the corrective measures were taken, in order for the statistical inference to be as objective as possible. Finally, this paper argues that VAT rules are considered a very important element for the Albanian economy, and the relevance of this study is to serve policymakers in drafting fiscal policies in the function of economic growth (GDP) in the future.

Collection of Value Added Tax in Kosovo and Its Effect on Economic Growth

2017 ◽  
Vol 8 (1) ◽  
pp. 225
Author(s):  
Teki Shala
Keyword(s):  
Economic Growth ◽  
Descriptive Analysis ◽  
Value Added ◽  
Analytical Techniques ◽  
Value Added Tax ◽  
Statistical Tool ◽  
Revenue Collection ◽  
Strong Positive Relationship ◽  
Level Of Economic Development ◽  
Level Of Significance

The revenue collected from the value added tax constitutes the main income of the Kosovo government. For this reason, this research has a great importance in the formulation of effective policies in Kosovo that will subsequently improve the efficiency of tax collection of Value Added and growing fiscal and budgetary stability. This research it will have a descriptive analysis of the trends of VAT collection in Kosovo from 2005- 2015 years using different analytical techniques to examine trends and data structure over the years. We have used two types of analysis; One is the descriptive analysis of trends and the other is the contrast of the descriptive analysis of trends that is the econometric technique used to analyze the VAT effect on economic growth in Kosovo. The source of data for this study is secondary through the Annual Financial Report of the Ministry of Finance of Kosovo and the IMF. In order to analyze the data generated for the study, the statistical tool utilized is OLS technique (multiple regression). One of the key findings in the collection of VAT has been its dependence on the border. Revenue collection is among the most pressing problems and such situation does not guarantee a country's budgetary stability. Also, based on the findings we noted that the VAT share of the gathering in gross domestic product of the Interior of the country has been low compared to other countries in Europe developing, reflecting a low level of economic development. Also from econometric analysis is confirmed that the regression coefficient shows that we have a VAT impact on GDP in Kosovo, because the level of significance is .000, or includes the rate of 1%. Also, the correlation between VAT and GDP shows a strong positive relationship, or statistically interpreted with the increase of VAT, will increase the GDP of Kosovo, these two elements conclude that VAT has a significant impact on economic growth in Kosovo. Furthermore, this research highlight some key issues that policy makers should consider dealing with the collection and effective use of revenue collected from VAT, to improve growth.

scholarly journals Dynamic Integrated Model for Assessing Fisheries: Discard Bans as an Implicit Value-Added Tax

2021 ◽  
Author(s):  
Jose Maria Da Rocha ◽  
Javier García-Cutrín ◽  
Maria-Jose Gutiérrez ◽  
Raul Prellezo ◽  
Eduardo Sanchez
Keyword(s):  
Value Added ◽  
Point Of View ◽  
Value Added Tax ◽  
Biological Variables ◽  
A Value ◽  
Long Run ◽  
The Social ◽  
Negative Effect ◽  
Short Run ◽  
The Impact

AbstractIntegrated economic models have become popular for assessing climate change. In this paper we show how these methods can be used to assess the impact of a discard ban in a fishery. We state that a discard ban can be understood as a confiscatory tax equivalent to a value-added tax. Under this framework, we show that a discard ban improves the sustainability of the fishery in the short run and increases economic welfare in the long run. In particular, we show that consumption, capital and wages show an initial decrease just after the implementation of the discard ban then recover after some periods to reach their steady-sate values, which are 16–20% higher than the initial values, depending on the valuation of the landed discards. The discard ban also improves biological variables, increasing landings by 14% and reducing discards by 29% on the initial figures. These patterns highlight the two channels through which discard bans affect a fishery: the tax channel, which shows that the confiscation of landed discards reduces the incentive to invest in the fishery; and the productivity channel, which increases the abundance of the stock. Thus, during the first few years after the implementation of a discard ban, the negative effect from the tax channel dominates the positive effect from the productivity channel, because the stock needs time to recover. Once stock abundance improves, the productivity channel dominates the tax channel and the economic variables rise above their initial levels. Our results also show that a landed discards valorisation policy is optimal from the social welfare point of view provided that incentives to increase discards are not created.

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.

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