Nigeria finance bill will modestly increase revenue

Significance The bill aims to expand the accruable revenue for the federal government, crucial for meeting the government’s 2022 fiscal targets. In particular it looks to close existing tax loopholes rather than raising consumption taxes which could inhibit economic growth. Impacts Increased taxes will only have a limited impact on consumer spending and inflation. The bill will not appreciably increase state-level revenues. Broader institutional reforms in the public sector are unlikely due to powerful patronage networks.

Government Challenges Over Global Electronic Commerce Using FinTech

The challenge over most countries has been legislating related acts and regulations on global electronic commerce taxation, but they have not implemented the consumption tax system for global electronic commerce so far. Consumer payment tax (CPT) is based on fintech and thereby proposed so that consumers can pay the consumption taxes to related taxation office of the countries in accordance with consumer country's jurisdiction principle, considering the CPT is assessed to satisfy most of the electronic commerce taxation criteria and has the potential to be applied to electronic commerce.

Value Added Tax Efficiency in the Western Balkan Countries

An important feature of the tax systems of the Western Balkan countries is the large share of consumption taxes in total tax revenue. Despite its relatively short existence, VAT in particular has proven to be an important fiscal tool, due to its many advantages. The aim of the article is to outline the main developments in VAT in these countries in the past two decades and to analyse its efficiency. The main result of the article is that the tax has good overall revenue performance in the Western Balkans, as measured with the C-efficiency ratio.

THE STANDARD VAT RATE AND THE EFFECTIVENESS OF FISCAL POLICY IN EUROPEAN UNION COUNTRIES

The purpose of this article is to present and assess the impact of a standard VAT rate on fiscal revenues of the European Union Member States. The article follows the method of economic statistical analysis and offers a review of available literature on the subject. The basic VAT rates of the European Union countries are presented, compared and correlated with tax revenues related to consumption taxes in the years 2005–2019. These years were chosen for analysis because of the biggest European Union enlargement which took place during 2004. A statistical analysis was conducted. The data of a correlation coefficient for each country and the dynamics indicators were calculated. The results of the statistical analysis for Member States were interpreted. The article assesses the relationship between the standard VAT rate and the share of consumption tax revenues in GDP.

The Macroeconomic Effects of Income and Consumption Tax Changes

This paper estimates the effects of exogenous changes in income and consumption taxes. The tax shocks are proxied with a narrative account of tax liability changes in the United Kingdom. Income tax cuts have large effects on GDP, private consumption, and investment. The effects of consumption tax cuts are modest and not statistically significant on GDP and its components. Shifting the burden of taxation from income to consumption is expansionary. Consistent with conventional public finance theories, these results indicate that it is crucial to distinguish between direct and indirect taxation when studying the transmission mechanism of fiscal policy. (JEL E21, E22, E23, H24, H25)

The Politics of Cash Transfers in Kenya

How does public opinion on the causes of poverty and deservingness condition support for government support for the poor? This paper answers this question with a focus on direct cash transfers. I find minimal partisan differences in perceptions of the causes of poverty and deservingness, but significant differences in opinions on how to finance cash transfers. Supporters of the incumbent president are more likely to support increasing consumption taxes to finance these programs compared to opposition supporters. These findings suggest that partisan differences about social spending may exist even when there is agreement on the causes of poverty and deservingness.

Taxing the Tails in a Global Economy: How Electoral, Party and Wage Bargaining Systems Interact to Determine the Taxes Paid by the Poor and Rich

A prominent line of research on electoral systems and income redistribution argues that proportional representation (PR) leads to tax-and-transfer policies that benefit the poor at the expense of the rich. This is because PR produces encompassing center-left coalitions that protect the poor and middle classes. Yet countries with PR electoral systems tend to rely heavily on consumption taxes and tax profits lightly, both of which are inconsistent with this expectation. Both policies are regressive and seem to benefit the rich at the expense of the poor. This article argues that PR electoral institutions, when combined with trichotomous multipartism, are not as hostile to the rich as commonly believed, and that it is important to understand how electoral and party systems interact with labor market institutions in order to explain the puzzling pattern of taxation that is observed. The author develops a theoretical model and evaluates its empirical implications for a world in which production has become multinational.