Abstract
In this case study we examine the relationship between the collection of taxes and revenue targets generated by each of the Financial Services at the Directorate General Taxes of the Republic of Mali. Revenues generated by the Directorate General of Taxes contributed a big chunk of funds to the Malian Treasury, about 40%, with our focus being on the year 2012. After economic modeling and estimation, we realized that there is a positive correlation between tax collection changes and the revenues generated. The estimates of the revenue growth model of Directorate General of Taxes in Mali show that it’s influenced by changes in the collections of taxes.
Highlights
According to [1] Taxation imposes welfare costs on individuals which, expressed in money terms, exceed the tax paid
The Directorate General of Taxes in Mali estimates as looked at in this study show that the revenue growth model is influenced by changes in the collections of taxes
After the modeling and estimation we can say from the value of α1 = 0.119 that there is a positive correlation between the collection of taxes and revenues generated by financial services of the Directorate General of Taxes of Mali
Summary
According to [1] Taxation imposes welfare costs on individuals which, expressed in money terms, exceed the tax paid. This gives rise to the idea of the excess burden of taxation, which is one of the most important concepts in public economics. It represents an efficiency loss caused by distortion in choices arising from a change in relative prices. Since the burden imposed on taxpayers exceeds the tax they pay, it is important to ensure that the perceived benefits arising from government expenditure are sufficient to outweigh the efficiency losses.
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